In October 2024, a 77-year-old woman nearly lost S$250,000 after falling victim to a scam in which a fraudster convinced her to transfer the money to a DBS bank account to resolve a supposed credit card fraud. Fortunately, DBS’s Anti-Mule Team quickly flagged the suspicious transaction, working with the Singapore Police Force’s Anti-Scam Centre to trace and intercept the funds. They discovered that the money had been sent to a 25-year-old woman who had allegedly sold her bank account and Singpass credentials for just S$600. The woman was subsequently arrested.
This incident sheds light on the growing issue of money mules—individuals who act as intermediaries in the laundering of illicit funds, often unknowingly, but sometimes willingly. A money mule’s role is to transfer illegally obtained funds to another party, thereby helping criminals disguise the origins of the money. Contrary to popular belief, acting as a money mule is a criminal offense, and in Singapore, laws enacted in 2023 specifically target individuals involved in laundering money, whether through scams, fraud, or other criminal activities like drug trafficking.
Why Being a Money Mule Doesn’t Pay
The legal and financial risks of being a money mule are significant. First-time offenders in Singapore can face up to two years in prison, fines of up to S$5,000, or both. Beyond the legal penalties, individuals convicted of money muling may also lose access to banking services, which can significantly hinder their financial future and employment prospects.
Chris Huang, who leads DBS’s Anti-Mule Team, explains, “If someone is identified as a money mule, their account may be frozen, restricting access to their funds. In some cases, these accounts may even be permanently closed.” This serves as a clear warning to anyone considering getting involved in such activities—whether knowingly or unknowingly.
Despite these risks, the number of money mules in Singapore is on the rise. According to the Ministry of Home Affairs, the Singapore Police Force (SPF) investigated over 9,600 individuals for money mule activities in 2023, up from around 7,800 in 2022. Many of these individuals are young people, including students, who are lured by the promise of easy money.
How Do People Become Money Mules?
Many money mules are tricked into facilitating illegal transactions under false pretenses. Some are enticed by seemingly legitimate job offers, such as “work-from-home” opportunities that involve receiving and forwarding payments. Others, such as those caught in romance scams, may feel compelled to help someone they trust, only to unknowingly become part of a money-laundering scheme.
One of the most worrying aspects is that some individuals are actively recruited by scam syndicates. These syndicates use social media and messaging platforms to reach out to youths, offering large sums of money in exchange for things like Singpass credentials or access to bank accounts. As much as S$7,000 has been offered for the sale of personal credentials, which are then used to open bank accounts for criminal activities.
Combating Money Muling
Efforts to curb money muling are critical as these activities often link individuals to larger, more dangerous criminal networks. These networks can be involved in a range of illicit activities, including money laundering, terrorism financing, and drug or human trafficking.
Banks like DBS are stepping up their efforts to detect and prevent money muling. In September 2023, DBS launched Singapore’s first Anti-Mule Team, which works alongside other anti-scam initiatives like the Anti-Scam Team, set up in 2019. These efforts focus on identifying money mules early on, freezing suspicious accounts, and supporting law enforcement in recovering illicit funds. In fact, DBS has already conducted joint operations with SPF, seizing over S$8.5 million from compromised accounts.
Raising Awareness
DBS has also focused on educating the public, especially younger audiences, about the dangers of becoming a money mule. The bank launched a series of TikTok videos that have garnered over 70,000 views each, highlighting the risks and consequences of getting involved in such activities. This initiative is part of a broader effort to counteract the increasing trend of scam syndicates using social media platforms to recruit individuals.
“Be wary of any job offers that sound too good to be true, and remember that banks will never ask for your banking or Singpass details over the phone or via text message,” advises Chris Huang.
Conclusion
While the temptation of quick and easy money can be enticing, the cost of acting as a money mule is high. Not only do individuals face legal penalties, but they also risk ruining their financial reputation and future prospects. As scam syndicates become more sophisticated, it is vital to stay informed and cautious, especially when it comes to online job offers or requests to transfer funds. Awareness, vigilance, and collaboration between the public, banks, and law enforcement are key to preventing the rise of money muling and the criminal networks that rely on it.
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