Australians lost millions to bank‑transfer scams in the past year, and police say criminals are increasingly using ordinary bank accounts as ‘money mules’ to launder that cash. The Australian Federal Police and the Australian Banking Association have renewed their warning after reports that people are renting or selling accounts; mules can be paid as little as A$200 and sometimes receive a commission. Banks enforcing Know Your Customer checks may temporarily block accounts where verification is ignored, and the AFP points to prosecutions including a Sydney woman jailed in April 2025 for renting multiple accounts.

How the scheme works

Criminal syndicates recruit people to move illicit cash through genuine Australian bank accounts so the money appears legitimate. The AFP describes these recruits as money mules — people who may be knowingly or unknowingly asked to receive funds and forward them on, or to let criminals use their accounts for deposits and withdrawals. The practice hides the cash trail and makes detection harder for investigators.

Police and banking groups say recruitment happens across multiple channels, including:

  • Social media, messaging and gaming platforms
  • Chat forums and online classifieds
  • Face‑to‑face approaches and employment‑style frauds that pose as legitimate jobs
  • Romance scams, threats and offers to cash transfers in exchange for a fee

Organised groups are also shifting money through cryptocurrency exchanges, CATMs (machines that turn cash into crypto) and global money‑transfer apps. In those cases, a mule may withdraw cash and feed it into a CATM so the funds move quickly into a wallet controlled by the criminals.

Scamwatch data shows Australians lost millions to scams conducted via bank transfer in the most recent reporting year. Money laundering charges carry heavy penalties under Australian law, including long prison sentences for the most serious offences.

Banks push KYC checks. Customers can be cut off.

Banks run regular Know Your Customer (KYC) checks to comply with the Anti‑Money Laundering and Counter‑Terrorism Financing Act. These checks require banks to verify and update customer details within set timeframes so suspicious activity can be better spotted and regulatory obligations met.

If customers ignore verification requests, banks may freeze or restrict access to accounts while they investigate. That temporary disruption can be highly disruptive to daily life.

  • Customers who dismiss verification messages have reported being unable to pay for essentials until the account is restored.
  • Banks say short‑term blocks are preferable to allowing illicit transfers to continue while investigations proceed.

Scam examples underline the risks

The Australian Banking Association uses an illustrative case to show how fraud unfolds. In that example a 62‑year‑old woman — labelled Susy in the ABA’s account — was contacted by a caller posing as a security specialist, who gained remote access under the pretext of removing malware. The scammer sold fake anti‑malware and insurance, and later persuaded Susy to share a security code to open a new online account for transfers. The pattern triggered the bank’s fraud alerts and led to an account lock while staff investigated; a bank employee spoke with Susy and explained the warning signs after significant sums were lost.

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Police say money mules can be paid as little as A$200 — and prosecutions are already under way, including a Sydney woman jailed in April 2025 for renting multiple accounts.

This article was created with AI assistance.