Money mules: Moving from detection to prevention


While the benefits of instant payments are clear, it is essential that innovation in payments occurs alongside investment in financial crime prevention technology. The advent of P2P instant payments has greatly benefited the consumer, but it is also being exploited by criminals to defraud customers. Authorized fraud is on the rise and is notoriously difficult for banks to detect with traditional tools and tactics, as the victim sends the money themselves in a social engineering scam. All measures taken by financial institutions to authenticate the customer are ineffective because customers use their own identity.

This problem is exacerbated by the use of monetary mules to increase the complexity of detection. This is where criminals use seemingly legitimate bank accounts to launder stolen money.

There is a clear correlation between the degree of alignment of fraud and anti-money laundering teams within a bank and their success in attempting to reduce attack vectors for authorized fraud, identify money mule accounts and protect customers most at risk of being targeted.

What is the solution? Banks need to start thinking about the components that need to come together to manage these threats more effectively, such as creating a layered approach to prevention through the use of machine learning and making changes to the culture of the organization. This is essential for banks that want to move from simply detecting financial mules to preventing financial crime.

Register for this Finextra webinar, in association with NICE Actimize, to join the panel of industry experts who will discuss the following areas:

  • What needs to be done to ensure instant payments continue to be a viable option in the face of growing fraud?
  • Who is responsible, or accountable, or who takes up the challenge of the financial mule?
  • Who should banks work with to ensure that the most at-risk customers are no longer vulnerable?
  • How can you put measures in place to intervene and prevent fraud in the first place?

Speakers include:

  • Gary Wright – Head of Research, Finextra
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