When fraudsters can’t make you a victim, they may turn you into a money mule

With persistently high youth unemployment, South Africa faces a growing threat from fraudsters exploiting desperate and vulnerable young people.

This has driven a surge in so-called “mule accounts”, an industry-wide problem that enables criminals to move and launder illicit funds while masking their identities.

The National Financial Ombud Scheme (NFO) reported that account freezes and fraud-related restrictions linked to suspected mule activity increased by 300 cases in 2025, accounting for approximately 8% of all finalised banking dispute cases.

“Fraud continues to evolve at a rapid pace, and these figures show that mule activity is not an isolated issue but an increasingly significant component of broader financial crime,” says Standard Bank’s Head of Fraud Operations, Client Experience and Risk Execution, Marius le Roux.

Le Roux adds that while banks continue to strengthen controls and invest in client education, these schemes are particularly concerning because they target unsuspecting individuals, many of whom only realise they have been exploited when it is too late.

“This is why this type of fraud is hard to prevent. It requires both strong controls and ongoing public awareness,” says Le Roux. “At the same time mule fraud is becoming more sophisticated and coordinated. Stolen funds quickly moved across multiple accounts and banks, making them difficult to track and respond to in real time.”

What is a money mule?
A money mule is someone who moves illegal money for fraudsters, usually through their bank account or crypto wallet. Some people do this on purpose to make quick money, but many don’t realise it. Fraudsters often trick them using scams to get their personal details or to open accounts for them.

Here are some common ways fraudsters trick people into becoming money mules:
• Fake job offers: They advertise jobs where you receive money, send it on, and keep a small cut.
• Social media: They contact you on apps or online, promise profits from crypto, and ask you to move money or cryptocurrency.
• Refund scams: They “mistakenly” send you money, then ask you to send it back to a different account.
• “Help a friend” requests: Someone you know asks to use your account, often saying theirs is frozen or offering quick cash.
• These are just the most common examples but there are many other ways fraudsters may try to trick you.

Also watch out for these red flags:
• Someone offers you money to move funds through your account
• You’re asked to open a new account for a “job”
• You’re told to receive and send payments
• The person asking is vague about why they can’t use their own account and ask you to keep it secret
• They tell you not to contact your bank about unexpected money
• They offer to buy your crypto or gambling account

Becoming a money mule – even without knowing it – has serious risks. Your bank account could be closed or flagged; you may face a criminal investigation or be locked out of financial services. These are just a few examples.

Don’t fall for these scams. If you’re contacted, don’t share your banking details or send any money. Contact your bank immediately for help.