Criminals exploit economic hardship and unemployment
Fraudsters are exploiting unsuspecting South Africans as money mules, leaving victims facing frozen accounts and criminal investigations
- Money mule activity is becoming a growing form of organised financial crime.
- Fraudsters target job seekers with fake employment offers and online scams.
- The National Financial Ombud Scheme recorded a rise of 300 mule related banking cases last year.
- Victims often don’t realise they are helping criminals until their accounts are frozen.
- Standard Bank urges the public to recognise the warning signs and never move money for strangers.
The promise of quick cash or what appears to be a legitimate job offer can end with a frozen bank account, a criminal investigation, and lasting damage to your financial future. Banks are warning that organised criminal networks are increasingly recruiting unsuspecting South Africans to move stolen money, often without victims realising they have become part of a fraud scheme.
As unemployment remains stubbornly high, the number of so called mule accounts continues to grow, making it easier for criminals to launder illicit funds while concealing their identities.
The National Financial Ombud Scheme (NFO) reported that account freezes and fraud related restrictions linked to suspected mule activity increased by 300 cases during 2025, accounting for approximately 8% of all finalised banking dispute cases. The figures underscore the growing role money mules play in enabling broader financial crime.
“Fraud continues to evolve at a rapid pace, and these figures show that mule activity is not an isolated issue but an increasingly significant component of broader financial crime,” says Standard Bank’s Head of Fraud Operations, Client Experience and Risk Execution, Marius le Roux.
Le Roux says that while banks continue to strengthen controls and invest in client education, these schemes remain particularly concerning because they target unsuspecting individuals, many of whom only realise they have been exploited when it is too late.
“This is why this type of fraud is hard to prevent. It requires both strong controls and ongoing public awareness,” says Le Roux.
“At the same time, mule fraud is becoming more sophisticated and coordinated. Stolen funds quickly move across multiple accounts and banks, making them difficult to track and respond to in real time.”
What is a money mule?
A money mule is someone who moves illegal money for fraudsters, usually through their bank account or crypto wallet.
Some people do this on purpose to make quick money, but many don’t realise it.
Fraudsters often trick them using scams to get their personal details or to open accounts for them.
Here are some common ways fraudsters trick people into becoming money mules:
- Fake job offers: They advertise jobs where you receive money, send it on and keep a small cut.
- Social media: They contact you on apps or online, promise profits from crypto and ask you to move money or cryptocurrency.
- Refund scams: They “mistakenly” send you money, then ask you to send it back to a different account.
- “Help a friend” requests: Someone you know asks to use your account, often saying theirs is frozen or offering quick cash.
- These are just the most common examples, but there are many other ways fraudsters may try to trick you.
Warning signs to watch for
Be cautious if:
- Someone offers you money to move funds through your account.
- You’re asked to open a new account for a “job”.
- You’re told to receive and send payments.
- The person asking is vague about why they can’t use their own account and asks you to keep it secret.
- They tell you not to contact your bank about unexpected money.
- They offer to buy your crypto or gambling account.
The consequences can be severe
Becoming a money mule, even without knowing it, has serious risks. Your bank account could be closed or flagged, you may face a criminal investigation or be locked out of financial services. These are just a few examples.
Don’t fall for these scams. If you’re contacted, don’t share your banking details or send any money. Contact your bank immediately for help.