Beware of money mule recruitment in the UK

IPA Insolvency Practitioner newsletter, February 2025

Criminal networks are increasingly exploiting vulnerable individuals, including international students and non-permanent residents, to launder illicit funds. These “money mules” are used to transfer illegally-acquired money, often without their knowledge of the crime. They are recruited through online platforms, face-to-face contact, and trusted insiders such as migration agents.

Money mules facilitate a variety of illicit activities, including human trafficking, drug trafficking, and scams. By moving funds through personal or business bank accounts, cryptocurrency transactions, or cash deposits, they help criminal networks avoid detection.

Insolvency Practitioners and their staff should be particularly aware of the risks associated with personal insolvencies, including the potential misuse of business accounts in such schemes. Personal insolvency cases can involve hidden financial irregularities or connections to illicit activities that could incur in bankruptcy, Individual Voluntary Arrangements and Protected Trust Deeds. Practitioners must stay alert to unusual account activity and discrepancies in financial statements. This could also occur in cases where a business account appears to have been compromised.

It is essential to remain vigilant to warning signs, report suspicious activity to local law enforcement, and maintain up-to-date knowledge of tactics used by criminal networks

For more information, the following links provide useful information. visit: Money Mules – National Crime Agency and a useful Australian article on the same subject: 2024_AUSTRAC_FCG_StudentMoneyMules.pdf