Australian police warn students are being used as ‘money mules’ for global crime rings
Students in Australia are at risk of serious jail time, with experts warning they are being targeted by criminal syndicates in a new scam wave.
EXCLUSIVE: Overseas students are increasingly selling or renting their bank accounts for a few hundred dollars as they prepare to leave Australia at the end of their studies, exposing them to charges of fraud and possible prison sentences.
International criminal syndicates are using Australian bank accounts to launder potentially millions of dollars in the proceeds of crimes ranging from drugs to human trafficking overseas.
The practice called muling allows criminals to transfer proceeds of crime through legitimate bank accounts through small amounts over a large number of transactions.
Australian Federal Police acting commander Marie Andersson said muling was difficult to detect and helped criminals conceal flows of money overseas.
“They’re moving small amounts of illegitimate money over the course of a large number of transactions,” she said.
“We know that to be microlaundering, [which is] really under the radar and hard to detect.”
Ms Andersson said muling was an enabler of other crimes spanning from drugs to human trafficking to cyber fraud.
“In the cyber crime area we’re seeing it hugely in investment and romance scams,” she said.
“These offshore scam centres are utilising Australian banks like this to be able to move their illicit money out off the shores of Australia.”
Ms Andersson said the money was being sent all over the world but a high proportion was being sent to Asia where the AFP was collaborating with local law enforcement.
“There is a strong trend that the money is being moved or there’s criminal activity in the Asia region,” she said.
“So we work very closely with our Asia partners which we have a longstanding relationship and collaboration with, and we work with them to recover any funds that we can.”
Ms Andersson said muling and microlaundering would be just one layer of how scam centres moved proceeds of crime overseas.
Ms Andersson said the crime syndicates were recruiting vulnerable international students online through social media platforms, instant messaging apps and emails.
“They [international students] could be in a financial situation because they are living in a different country, there’s some language barriers there, they have limited knowledge of criminal law,” she said.
Ms Andersson said many mules may not realise they are exposing themselves to charges of fraud by renting or selling their bank accounts.
“Being a money mule, you are a victim but you may be facing serious charges if you are seen to be operating a bank account or selling your bank account or ID,” she said.
“Money laundering is a serious offence. Even just for dealing in amounts of more than a thousand dollars, you’re looking at five years’ imprisonment.
“So we really want the message out there – protect yourself from actually becoming a victim, because you might end up in trouble yourself.’
