Internet users and job hunters are being urged to be on their guard against ‘too-good-to-be-true’ money earning opportunities during the economic downturn. Experts at GetSafeOnline.org are seeing increasingly sophisticated tactics being used by fraudsters to recruit unwitting ‘money mules’ in order to launder funds gained from illegal activity.

According to Get Safe Online, the UK’s national internet security initiative, fraudsters are making use of legitimate channels - including mainstream recruitment websites - to mislead web users into thinking they have a genuine job as a ‘financial manager’, ‘money transfer agent’, ‘shipping manager’ or even ‘mystery shopper’ (purporting to evaluate customer service at high street banks). Lured by the prospect of substantial earnings for relatively little work, many victims instead end up tagged as criminals, with their bank accounts suspended and liable to repay the full amount of laundered funds [1].

The Rt. Hon. Angela Smith, Minister of State for the Cabinet Office, comments: "The internet can be a great tool to help people find work during the global economic downturn, but with criminals using increasingly sophisticated methods to take advantage of jobseekers, we need to maintain vigilance. Scams such as this can end up landing you in trouble with the law, which is why we're asking all internet users to take some time out of their week to visit the Get Safe Online website and make sure they are up-to-date with the latest threats and advice."

Deputy director of e-Crime at the Serious Organised Crime Agency (SOCA) and chair of the GetSafeOnline.org steering committee, Sharon Lemon, explains: “Criminals are reliant on mule operations to receive and forward money taken from online banking fraud. Some money mules know exactly what they are doing. However, many end up unwittingly laundering profits for overseas criminals as a result of being taken in by fake recruitment sites. The consequence is that they end up liable for all the criminal funds they’ve received - which must be repaid, their bank accounts are frozen and they may be subject to criminal investigation.”

Tony Neate, managing director of GetSafeOnline.org, explains the scale of the problem: “At any given time, there are approximately 100 known mule recruitment sites targeting the UK, each of which may have around 50 active mules. Many will be moving considerable sums of money, but even based on a low estimate that each mule makes just three to four transactions, amounting to around £1,500, before being caught - that’s already £7.5 million in illegal funds.”

Despite the scale of these scams, according to 2009 Get Safe Online survey results [2] released today, 90% of UK internet users have never heard the term ‘money mule’. The survey also highlights that we use the internet to search for job opportunities more than any other method, with over a third (39%) searching for jobs via legitimate, mainstream employment websites, used by many fraudsters to recruit potential mules.

Furthermore, 1 in 7 (14%) internet users claim to have been approached online with a job offer they’ve never applied for or enquired about via an unsolicited email from a person or company they are unfamiliar with – one of the several ‘warning signs’ to watch out for.

Neate adds: “Fraudsters go to great lengths to convince potential mules that they are applying for a genuine job - some even issue official-looking ‘employment contracts’ for their ‘employees’ to sign.

“Even though many mules are unwitting accomplices, they are the easiest part of the criminal chain to track down - and by allowing their bank accounts to be used to receive and transfer illegal funds, they are breaking the law, even if they do not realise it. With many people looking for ways to earn money during a recession, it’s critical that people learn to spot the warning signs to avoid becoming a victim,” Neate concludes.

Get Safe Online Week 2009

Mule recruitment scams are one of the key threats being highlighted at the annual Get Safe Online Summit taking place in central London this morning [3], marking the start of this year’s Get Safe Online Awareness Week, which runs from 16th to 20th November.

At the Summit, Get Safe Online will also launch its 2009 Report, UK Internet Security: State of the Nation. The Report highlights that, although the last few years have seen some steady improvements in installing computer security software and our ability to detect common scams, over a third of UK internet users (34%) still report being the victim of a computer virus attack, 22% have experienced a phishing scam, and over 1 in 5 (21%) have been a victim of identity fraud.

For information and advice on how to guard against online fraud and other internet crime, visit the Get Safe Online website at www.getsafeonline.org.

- Ends -

Notes to Editors:

[1] A Media Factsheet (248KB, PDF) on money mule recruitment scams is also available from the Get Safe Online press office.

[2] Figures are taken from the 2009 Get Safe Online survey, independently carried out by ICM Research in October 2009. The survey interviewed 1,520 adults over the age of 18 with access to the internet. The results are summarised in the 2009 Get Safe Online Report, UK Internet Security: State of the Nation (714KB, PDF) published today.

[3] The Get Safe Online Summit takes places on Monday 16th November in central London. It brings together stakeholders from Government, industry and the public sector to discuss internet crime and strategies for helping consumers and small businesses protect themselves online. Attendance is by invitation only. A limited number of places have been reserved for media; to enquire about availability, please contact the Get Safe Online press office.

For further information:

• Contact the Get Safe Online press office team on 020 3047 2561 or press@getsafeonline.org.
• Interviews available on request
• The Rt. Hon. Angela Smith, Minister of State for the Cabinet Office may be available for further comment – please speak to the press office