Lloyds Bank’s fraud team has pledged it is working hard to crack down on instances of scams, but the issue is sadly widespread. While phishing scams are now often recognised by Britons, con-artists are using other techniques to select their prey. One such example is a phenomenon known as “money muling”, a type of crime where individuals can be recruited for money laundering purposes, without even being aware of it themselves. 

The bank issues funds in the first instances, but then contacts the companies involved asking for the funds to be refunded to them.

Companies then have the chance to challenge, proving the services were supplied and the payment made by direct debit originally was correct.

If the company successfully challenges, then the refund issued by the bank is then re-debited from the account, an instance which the woman in question faced.

Rather than the promise of making fast money, the customer now owes the £2,181.11 sum, as all of the refund was spent by the fraudster.

She also compromised the security of her account by sharing her personal banking information with someone she did not know. 

“We have since incorporated the intel from this industry-leading pilot into our state-of- the-art fraud systems to stop the movement of money from scams, shutting down fraudsters’ attempts to shift money using cutting-edge defences."

In 2020, the bank froze approximately 40,000 accounts in this regard, and trapped £32million in the proceeds of crime.

It found half of suspected mule accounts belong to individuals over the age of 25.

Unsuspecting mules could also face up to 14 years imprisonment, and so it is particularly important to remain on one’s guard.

Thankfully, though, there are some actions Britons can take in order to protect themselves from being targeted in this manner.

When looking out for a money mule scam, it is firstly important to remember that no legitimate company will ever ask a person to use their own bank account to transfer their money - this should be avoided at all costs.

If these types of offers derive from people or companies overseas, it can also be a red flag, as it could make it harder for Britons to find out if they are legitimate or not.

Finally, individuals should never give out any financial details to a person they don’t know, whether this is via social media or otherwise.