The FSCA advises financial customers to be cautious when approached by unknown individuals or organizations for money transfers in their bank accounts, often with promises of rewards or payments.
This financial sector conduct says that the 'money mule’ scam occurs when fraudsters pose as bank customers. This enables them to receive and transmit money from illegal activities like drug trafficking, theft, fraud, and corruption.
FSCA said it has noted a significant rise in money mule scams recently. Criminals target vulnerable and cash-strapped individuals who are facing increasing financial pressures during challenging economic times.
It further warned that criminals may also approach unsuspecting victims using their valid identification documents to open bank accounts on their behalf.
“Such accounts are also used to receive and distribute proceeds from criminal activity,” the statement said.
The FSCA said the use of bank accounts for criminal purposes is illegal. Owners of bank accounts that are used to facilitate criminal activity may be charged and convicted of a crime, even if they unknowingly participate in such activity.
“This could lead to imprisonment and the customers could be banned from having access to a bank account in future.
“Financial customers are warned to be extra cautious when approached regarding the use of their bank accounts or personal information.
“Customers should also adhere to safety guidelines communicated by financial institutions to avoid falling prey to money mules and other financial scams,” FSCA said.
FSCA reminded the public to report lost or stolen identity documents to the SAPS and Southern African Fraud Prevention Service (SAFPS) to prevent criminals from opening bank accounts or accessing credit facilities under false pretences.
It further urged the public to:
– Never allow others to use your account to deposit or transfer money.
– Never open a bank account in your name on behalf of another person, even if you know the person or are offered payment in return.
– Never share your personal or financial information with anyone you don’t know.
– Never respond to unsolicited emails or messages from individuals or companies asking for access to your bank account or promising money in exchange for help.
– Always check with your bank for unusual or unexpected deposits into or transfers out of your account.
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