What is Smurfing?
Smurfing is a financial practice that involves breaking down large transactions into smaller, separate transactions, to disguise the real beneficiary or the true source or destination of the money. It is frequently employed in money laundering, terrorism financing and other financial crimes, as it allows criminals to obscure their tracks and reduce the chances of getting caught. Smurfing is also sometimes referred to as structuring or ‘managing big money by little money’.
Don’t Become a Money Mule
Money mules are people who are unknowingly, or knowingly, recruited and used by criminals to launder money through their bank accounts and transfer money from one account to another. Criminals use money mules in conjunction with smurfing to make their financial activities more difficult to detect. A money mule will typically receive funds into their account, split them up into smaller amounts and send them to other individuals or accounts, with the aim of laundered money ending up in the hands of the criminal or as part of a larger transaction.
Money mules can be recruited through different methods, such as job postings or social engineering, or even unknowingly by friends and family. Money mules are often promised a good salary for a job without having to leave their own house or work long hours, which can be very tempting in these difficult times.
The consequences of becoming a money mule can be far-reaching and may include criminal liability, reputational damage and personal financial losses. Money mules also have an impact on society as a whole, as by helping criminals launder their money they are actively participating in organized crime. Money muled funds are often used to further criminal activities and help criminals escape from justice.
Spot the Warning Signs
Money mules often don’t register that they are part of something illegal. It is important to be aware of the warning signs of money muling and to spot the red flags.
- Promises of high salaries with no real effort or skills required
- People offering you seemingly legit jobs but asking for your bank account number
- Being asked to transfer money overseas, and not being given any explanation as to why
- Being given suspicious payment terms, such as being asked to accept large payments without explanation
- Being asked to keep the transaction a secret
Tips to Protect Yourself
It is important to take safety measures to protect yourself from becoming a money mule and to look out for potential scams. Here are a few tips to help you stay safe:
- Never give out your bank details to strangers or people you don’t fully trust
- If a job offer sounds too good to be true, it probably is
- Always ask why you are being offered the job, and what is the company background
- Research the company and check any reviews about them online
- If you don’t feel comfortable with the job, don’t take it
- Keep evidence, such as emails and messages from the person offering you the job, in case you need to prove you were scammed
Reporting Smurfing and Money Muling
If you are suspicious about someone’s financial activities, it is important to report them to the relevant authorities. There are several ways to report money muling and smurfing:
- Report any suspicious activity to the Financial Action Task Force (FATF), a global body that works with governments to combat money laundering, terrorist financing and other related crimes.
- Report any suspicious activity to your local regulator such as the UK’s Financial Conduct Authority (FCA), which is the regulator of financial services in the UK.
- Report any suspicious activity to the relevant law enforcement agency, such as the police or the National Crime Agency (NCA).
Smurfing and money muling are serious financial crimes which have significant consequences on individuals and society as a whole. If you think you’re at risk of becoming a money mule, or you know someone who is, it is important to stay safe by following the tips above and reporting any suspicious activity to the relevant authorities.
