THE POLICE and several major banks are cracking down on the growing trend of students being lured into money laundering scams. With recruitment on the rise, students are being warned of the serious legal consequences of participating in fraud.

THE POLICE and several major banks are cracking down on the growing trend of students being lured into money laundering scams. With recruitment on the rise, students are being warned of the serious legal consequences of participating in fraud.

The Scottish Crime and Drug Enforcement Agency (SCDEA) has teamed up with HBOS, Royal Bank of Scotland, Clydesdale Bank and Yorkshire Bank to prevent the spread of this particular type of fraud, in which ‘money mules’ agree to receive illegal funds into their bank accounts before forwarding them at a profit.

Recruitment often takes place under the guise of legitimate employment; adverts for ‘money transfer agents’ have appeared in newspapers, recruitment websites and spam emails. Figures released by the Association for Payment Clearing Services show a 25 per cent increase in detected incidences of these adverts over the past year, with 873 having emerged in the first half of 2008.

As a group, students have proved to be particularly susceptible to these schemes, seeking a quick solution to the financial strains of studying.

However, the SCDEA’s Detective Chief Inspector Alan Cunningham was keen to assure students that money mule scams are not a source of ‘easy money’:

“The penalties attached to money laundering activity are serious and long-lasting. People who are caught risk a custodial sentence, a bad credit rating and a criminal record.

“In addition, people who allow their bank account to be used in this way are helping criminals to fund serious organised crime, are indirectly contributing to the misery faced by Scotland’s communities at the hands of these criminals.”

Shelagh Green, Acting Director at the University of Edinburgh’s Careers Service, told Student: “We would encourage students to seek our advice if they have any doubts or suspicions about any advert, whether on SAGE or elsewhere. We make use of our professional networks - e.g. the National Association of Student Employment Services - to check out suspicious vacancies.

“We recommend that students should treat any job offer with caution, but especially if it seems too good to be true. We would encourage students to make their own enquiries, without using the contact details given by the company, as these are often false although convincing.

“Should we receive feedback from students of any such activities at Edinburgh, we pass these on to the relevant authorities.” Green also mentioned a recent spate of scams in which bogus employers ask students for up front payments, often claiming that they are needed for visas.

Jonathan Shawcross, Director of RBS’s Group Security and Fraud department also stressed the need for vigilance among students, saying, “Fraud is never a victimless crime and becoming a money mule can have serious consequences for you.

“We are committed to tackling financial crime in all its forms. I am delighted that we are working in collaboration with law enforcement and industry partners on this initiative to protect our local communities across Scotland.”

In an attempt to raise awareness of money mule scams, 100,000 promotional drinks coasters were distributed across Scottish campuses as part of last week’s National Identity Fraud Prevention Week.