Wide-scale bank fraud and money mule activities pose such a significant threat that they should be considered a national security concern, according to a research institute's warning.
In the UK, the fight against money laundering and the use of money mules has become a top priority for regulators and law enforcement agencies. The National Crime Agency (NCA) and Financial Conduct Authority (FCA) have identified money mule activities as a significant threat to the country's financial sector and national security.
Money mules, often unknowingly, are used by criminals to launder profits from crimes such as fraud, scams, drug dealing, and people trafficking. Those found guilty of money mule activities can face a 14-year prison sentence. However, the sophisticated techniques and weak crime controls across the financial system enable money mules to operate nationwide.
To combat this issue, strategies focus on a mix of smarter regulation, better collaboration between private and public sectors, improved financial crime controls, and targeted intelligence sharing and reporting systems. The FCA and NCA's 2025 priorities embody this multi-pronged, coordinated approach.
Enhanced regulatory focus and prioritization are key components of the strategy. The UK's National Crime Agency and Financial Conduct Authority have prioritized combating money laundering and the use of money mules in their 2025 economic crime strategy. They emphasize reallocating resources efficiently towards high-impact areas such as money mule networks while maintaining regulatory responsibilities.
Public-Private Partnerships and Intelligence Sharing are also crucial. These strategies involve increased cooperation between industry players and law enforcement through enhanced information sharing, intelligence flows, and agreed methodologies to detect emerging patterns and risk areas involving money mules, including student involvement.
Improved Reporting and Suspicious Activity Identification is another important aspect. Financial institutions are being urged to proactively report suspicious activities related to money mule accounts and to use frameworks designed to identify trends, with a focus on suspicious onboarding practices that criminals exploit.
Targeted Regulatory Reforms are also being implemented. Changes to Money Laundering Regulations (MLRs) as of July 2025 raise thresholds for mandatory reporting, helping firms focus on higher-risk cases. Enhanced due diligence measures have been refined for high-risk jurisdictions, indirectly benefiting the detection of mule activities.
Regulatory action is also being taken against smaller, digital-first Payment Service Providers (PSPs) that are more vulnerable due to weaker financial crime controls. Significant fines, such as those levied against Monzo Bank, aim to push these providers to tighten onboarding and monitoring controls to prevent mule recruitment and usage.
Public Awareness and Educational Campaigns are also being used to combat the recruitment of students, who are often targeted as money mules due to a lack of awareness. These campaigns aim to educate potential victims about the risks of becoming mules and how to recognise recruitment tactics.
The report specifically addresses the rise of Authorised Push Payment (APP) fraud, where individuals are tricked into making payments to fraudsters. The report by the Royal United Services Institute (Rusi) suggests that newer digital banks with weaker financial crime controls are being disproportionately exploited by fraudsters and money mules.
The scale and extent of fraud in the UK are so vast that it may reasonably be seen as a national security threat, undermining the rule of law. The number of money mules in the UK has increased by 23% in just one year, with 225,000 people identified as money mules in 2024.
The cost-of-living crisis may lead more people to become involved in money mule activities as they search for quick ways to make cash. Many money mules are unaware they are laundering money, as it is often set up as a fake job advertisement online. Once money enters a money mule's account, it is quickly transferred elsewhere to make it difficult for authorities to track it down.
The report by Rusi highlights the significant threat that money mule activities pose to the UK's financial sector and national security. In many cases, these payments are made into accounts operated by money mules and controlled by the fraudsters. Crooks often recruit mules through social media, with recent data suggesting three in 10 students are exposed to money mule scams every week. More than half of the funds received into money mule accounts are quickly transferred out within an hour, according to Rusi research.
The scale of bank fraud and money mules in Britain is so extensive that it is considered a national security threat. The report emphasizes that the scale and extent of fraud in the UK are so vast that it may reasonably be seen as a national security threat, undermining the rule of law.
The focus on combating money mules, often used in illicit activities like fraud, scams, and drug trafficking, extends to the realm of business finance and general-news, as the UK's National Crime Agency (NCA) and Financial Conduct Authority (FCA) have prioritized this issue in their 2025 economic crime strategy. To effectively address this threat, the authorities advocate a mix of stronger regulatory action, public-private partnerships, improved reporting systems, and targeted educational campaigns.
In an attempt to bring about change, the FCA and NCA have focused on enhanced regulatory focus, public-private partnerships, improved reporting and suspicious activity identification, targeted regulatory reforms, and public awareness and educational campaigns. These strategies aim to combat the recruitment of money mules, especially students, and to tighten financial crime controls within the UK's financial sector and national security.
