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The big "money mule" problem in South Africa



The South African Fraud Prevention Service (SAFPS) has issued a statement alerting the public to the dangers of being recruited as a "money mule".

A "money mule" is somebody whose bank account is used by another person or entity.

This type of fraud is enabled by technology such as biometric identification, and results in the implication of innocent bystanders.

"People on street corners are recruited as money mules with the promise of quick payments for the use of their banking account," said SAFPS executive director Manie van Schalkwyk.

These "money mules" are used by others either knowingly or unknowingly, and will usually be recruited by someone who does not have a bank account or wants to make a payment invisible.

This problem has become so prevalent in South Africa that the SAFPS has opened a new category of fraud specifically to deal with the issue.

"The danger for the consumer is that they are complicit in a criminal act and will be getting involved with a fraudster," van Schalkwyk said.

"It might look like easy money, but the victim has no idea what the money is used for and it is often for illegal gains and even human trafficking."

In South Africa, most people are recruited at street corners, but this problem is around the world.

"There is nothing 'easy' about this money," van Schalkwyk said.

"When you allow the use of your bank account, you will be in a bank account, and will be recorded on a money mule."

"You could be looking at a criminal record for life, and worse be party to the devastating crime of human trafficking."

The SAFPS said it is working closely with local banks to maximize security and awareness around this type of fraud.

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