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Why the problem of ‘money mules’ is only likely to grow

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money mules

A recent report from UK fraud prevention service Cifas revealed that young Britons are increasingly being persuaded to act as money mules for hackers and other criminals. The study highlighted a 27% rise in the number of 14 to 24-year-olds who allowed their bank accounts to be used to launder the proceeds of criminal activity last year. Throughout 2017, Cifas noted an 11% increase in the number of bank accounts that may have been used for money mule activities, suggesting that criminals are ramping up their efforts to recruit the cash-strapped to launder their ill-gotten gains. Worryingly, the number of people aged under 21 who let their bank accounts be used in this way rose by 36% in the UK last year. While there was an increase in cases of money muling across all age groups in Britain in 2017, it appears as though younger people have become a prime target for those who have dirty money to clean.

One of the biggest problems for criminals who amass large amounts of cash through their illicit activities is how to make that money appear as though it has come from a legitimate source. Over recent years, a growing number of individuals and groups with funds to launder have used the internet to recruit mules who are happy to have cash paid into their bank accounts before forwarding it on. After receiving dirty money, mules are typically either instructed to transfer it overseas, or withdraw cash and use a service such as Western Union to wire it out of the country they live in. For their trouble, they are offered a percentage of the sum they process, or a one-off fee. In some cases, mules can be offered thousands of dollars for what amounts to fewer than 30 minutes “work”.

While this can seem like an easy way to make some quick cash, the majority of mules are unaware of the punishment they could face if they are caught. On top of this, it is not uncommon for criminals to refuse to pay money to mules once they have done what is asked of them. Despite this, the Cifas data suggests the methods criminals are using to recruit money mules are working, and that warnings from law enforcement authorities about what could happen to anybody caught laundering the proceeds of crime are simply not being heard.

Criminals looking to recruit money mules often place advertisements on legitimate employment sites and classified listings services. Their ads are often worded in a way that disguises the true nature of the role they want potential mules to fulfil, and are typically intended to appeal to the economically disenfranchised, such as immigrants, the unemployed and students. A focus on the latter group is likely a key driver behind the increase in UK money mule cases involving young people. Messaging apps such as WhatsApp and social media platforms including Facebook are also used to lure young people in.

Unfortunately for those who are tempted to act as mules without knowing the gravity of the offence they might be committing, ignorance will typically not be accepted as an excuse if they are caught by the police. The likelihood of money laundering offences committed by mules being detected is high, not only on account of the fact that banks are constantly strengthening their procedures and systems to better detect suspicious activity, but also because law enforcement authorities routinely target organised criminals who seek out mules to launder their cash.

In November last year, Europol and the European Banking Federation (EBF) teamed up with police forces in 26 countries to crack down on criminal organisations that use money mules and money mules themselves. The operation resulted in 159 arrests, and the identification 766 money mules and 59 money mule organisers operating in various countries across the globe. In total, law enforcement agencies that took part in the crackdown detected illicit money transfers worth $36 million. Commenting on the success of the operation in a joint statement, Europol, Eurojust and the EBF said they would launch similar initiatives in the future as part of their efforts to fight money laundering and other financial crimes. The figures released by Cifas earlier this month suggest that these types of operations are having little impact on money mule organisers or the individuals who are willing to allow their bank accounts to be used in this way.

The disparity between the number of organisers and mules detected during the Europol-backed crackdown goes some way to explaining why. While criminals looking for mules to wash their dirty money know how to avoid being detected by police, those desperate enough to take up their offers are typically oblivious to the seriousness of what they are being asked to do. As such, cases of money muling are likely to continue to rise, resulting in individuals who would never dream of getting involved in this type of illegal activity facing the possibility of lengthy jail terms, and acquiring criminal records that could seriously alter the course of the rest of their lives.

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European police agencies seize 550 tonnes of counterfeit pesticides in latest edition of Operation Silver Axe

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550 tonnes of counterfeit pesticides

The latest instalment of a Europol-coordinated operation targeting agricultural fraudsters has resulted in the seizure of 550 tonnes of counterfeit pesticides across Europe and the arrest of three individuals.

Now in its fourth year, Operation Silver Axe, which is supported by the European Anti-Fraud Office (OLAF) and involves law enforcement agencies in nearly 30 countries, saw investigators in search of fake pesticides carry out inspections at major seaports, airports and land borders.

Law enforcement officials in 29 participating nations also searched production and repackaging facilities looking for pesticide products that had not been tested to make sure they pose no risk to the environment or the health and safety of users, consumers and members of the public.

First launched in 2012, Operation Silver Axe is also intended to target the sale of counterfeit pesticides that infringe intellectual property rights such as trademarks, patents and copyright.

The bogus pesticides seized during this year’s operation would have been enough to spray 49,000km2 (30,447m2), an area the equivalent to the whole of Estonia.

Ahead of this year’s operation, OLAF provided participating nations with intelligence on 120 suspicious shipments of pesticides transported into member states.

Last year’s operation, which took place across 27 countries, saw investigators confiscate some 360 tonnes of illegal or counterfeit pesticides.

Since its inception seven years ago, Operation Silver Axe has resulted in 1,222 tonnes of illegal and fake counterfeit products being removed from circulation.

In a statement, Hans Mattaar, Technical Director of the European Crop Care Association (ECCA) said: “Every new Silver Axe operation shows how improving cooperation between law enforcement agencies leads to more efficiency in the fight against illegal pesticides.

“ECCA is pleased to see the result of Silver Axe IV, but at the same time concerned about the ongoing illegal business.

“We look forward to continuing our contribution to Europol in broadening the scope of Silver Axe.

“To increasing the pressure is the only way to discourage to discourage the criminal organisations behind this illegal trade.”

According to the European Crop Protection Association, the illicit global trade in counterfeit pesticides is growing at a swift rate, with increasing amounts of bogus agricultural products being sold to farmers across the globe by organised criminal networks.

The agency warns that fake pesticide products could be made from chemicals that are banned or restricted, and may lead to the total loss of treated crops, potentially compromising the livelihood of farmers.

It is estimated that counterfeit pesticides make up some 15% of the global $60 billion crop protection market.

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Criminal money mule recruiters increasingly targeting middle-aged Britons, UK fraud prevention agency finds

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money mule recruiters increasingly targeting middle-aged Britons

A new report from UK fraud prevention service Cifas has revealed that criminals ae increasingly targeting middle-aged Britons in a bid to persuade them to act as money mules.

In the latest edition of its annual Fraudscape study, Cifas said that it received more than 40,000 cases which “bore the hallmarks” of money mule activity in 2018, which was up 26% compared to the previous year.

While a rise in money mule activity was recorded across all age groups, the largest increase (35%) was seen among those aged between 41 and 60 last year.

Money mules agree to allow their bank accounts to be used by criminals to launder the proceeds of their illegal activities, and are typically offered a cut of the money they move as a commission, or high-value items such as expensive trainers in return.

Recruiters typically target potential mules online via social media platforms, historically seeking out young male victims who might be in financial difficulty, such as the unemployed or students.

While Cifas’ latest report shows that young people under the age of 30 are still by far the primary target of money mule recruiters, last year saw a marked rise in the number of older people becoming involved in the crime, albeit from a very low starting point.

More widely, the report reveals that Cifas members recorded almost 324,000 cases of fraud last year, which was up 6% on 2017.

Commenting on the contents of the study, Cifas CEO Mike Haley said: “Fraud in the UK continues to rise and fraudsters are constantly finding new methods of committing fraud.

“From identity theft through to using the young and naïve as money mules to launder money, the economic and social harm to the nation is growing.

“The only way to fight the threat is to combine communication and collaboration, working together to present a united front against the perpetrators.”

Acting as a money mule might seem like an easy way to make some quick cash, but those caught allowing their accounts to be used for the laundering of the proceeds of criminal activities can face stiff penalties, and will rarely be able to plead ignorance if they are caught.

Back in April of this year, police in Ireland warned students thinking of acting as money mules that they could face as many as 14 years behind bars if they allowed their bank accounts to be used by criminals to launder money.

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Wastewater analysis shows Australians taking more methamphetamine, heroin and MDMA

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wastewater analysis shows Australians taking more methamphetamine

Consumption of heroin and MDMA has risen to the highest levels ever recorded in Australia by an annual study that measures the presence of illicit substances in the country’s wastewater.

The seventh National Wastewater Drug Monitoring Programme report, released by the Australian Criminal Intelligence Commission (ACIC), also showed that Australians now use twice as much methamphetamine as any other illicit drug.

According to the study, Australia ranks second for methamphetamine and MDMA use among 25 countries that produce comparable stimulant data, but has relatively low comparative cocaine consumption.

The study revealed that while the consumption of nicotine and alcohol fell across the country in the 12 months to December last year, use of methamphetamine continued to outstrip the consumption of all other illicit drug types and pharmaceuticals.

The report estimates that Australia’s annual consumption of methamphetamine has reached nearly 10 tonnes, which compares to just over four tonnes of cocaine, and 750kgs of heroin.

Australian drug users are thought to favour synthetic narcotics on account of the cost and expense of shipping substances such as heroin and cocaine into the country from the regions in which they are grown.

The study also found that while use of synthetic opioid fentanyl plateaued in the final six months of 2018, oxycodone consumption rose over the same period.

On a regional basis, South and Western Australia were found to have the highest average use of methamphetamine, while Victoria had the highest rate of heroin consumption, and New South Wales the top level of cocaine use.

Unveiling the latest edition of the report, Australian Criminal Intelligence Commission Chief Executive Officer Michael Phelan said: “The Australian community continues to consume illicit drugs at concerning levels and the National Wastewater Drug Monitoring Program is providing an important, unified and consistent guiding tool for developing holistic drug responses.

“We are only now starting to realise the full benefits of the ongoing programme.”

The study found that average heroin consumption decreased in both capital city and regional areas, while average cannabis consumption increased in both city and regional sites.

The ACIC noted that the report covered 54% of the Australian population, which equates to about 12.6 million people, and that 50 wastewater treatment plants across Australia participated in the December 2018 collection, monitoring the consumption of 13 substances.

Earlier this month, the Australian Border Force (ABF) announced that it had seized 1.6 tonnes of methamphetamine, which was said to have been the largest shipment of the drug ever discovered in the country.

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