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Money muling

I’ve read a few posts on here over the last months, the most recent just this morning, about unsolicited monies landing in peoples accounts. This, sometimes, leads to the account being frozen while investigations are carried out.
Couldn’t the banks have some kind of central account whereby, when people ring up to report the deposit, the money is immediately moved until the origin of it is discovered. If it is genuine it can be returned to the customers account, if it is not, the depositor has lost it.

Am I being too simplistic?
I came into this world with nothing and I've got most of it left.
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Comments

  • worried_jim
    worried_jim Posts: 11,631 Forumite
    10,000 Posts Combo Breaker

    Am I being too simplistic?

    Yes. As soon as something suspicious happens to an account it needs to be investigated which may mean account activity and access being restricted.

    If money was simply moved to a central account the fraudsters will simply keep sending payments in the hope that one or more slips through. By freezing the account the fraudster(s) know immediately their rouse has been rumbled.
  • JuicyJesus
    JuicyJesus Posts: 3,832 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    In addition to what worried jim says, the main aim of the bank in these cases is to prevent the money from being moved onwards to where it can be withdrawn/spent. This idea doesn't help with that.
    urs sinserly,
    ~~joosy jeezus~~
  • agrinnall
    agrinnall Posts: 23,344 Forumite
    10,000 Posts Combo Breaker
    JuicyJesus wrote: »
    In addition to what worried jim says, the main aim of the bank in these cases is to prevent the money from being moved onwards to where it can be withdrawn/spent. This idea doesn't help with that.

    I don't agree, if the money is in a suspense account rather than in the customer's account how are the fraudsters going to get at it?
  • Yes. As soon as something suspicious happens to an account it needs to be investigated which may mean account activity and access being restricted.

    If money was simply moved to a central account the fraudsters will simply keep sending payments in the hope that one or more slips through. By freezing the account the fraudster(s) know immediately their rouse has been rumbled.
    JuicyJesus wrote: »
    In addition to what worried jim says, the main aim of the bank in these cases is to prevent the money from being moved onwards to where it can be withdrawn/spent. This idea doesn't help with that.
    I don’t think an account needs to be frozen as long as the holder has reported the suspicious payment, hence the idea of putting the money somewhere it can’t be moved on. I also don’t think any fraudster would be stupid enough to keep sending money to an account where there was no chance of them getting their hands on it. Neither of the above arguments have made me think it’s a bad idea.
    I came into this world with nothing and I've got most of it left.
  • colsten
    colsten Posts: 17,596 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    Are you looking for a problem for your solution? How many people have their account locked after they notified their bank of an unwanted payment made into their account? I don't think I have seen any reports of such blockings
  • I’ve read a few posts on here over the last months, the most recent just this morning, about unsolicited monies landing in peoples accounts. This, sometimes, leads to the account being frozen while investigations are carried out.
    Couldn’t the banks have some kind of central account whereby, when people ring up to report the deposit, the money is immediately moved until the origin of it is discovered. If it is genuine it can be returned to the customers account, if it is not, the depositor has lost it.

    Am I being too simplistic?

    Money muling isn't unsolicited. The mule deliberately takes money into their account, generally under the pretext of processing a payment or some other "work" their handler has them do. They then forward the money on to another account outside the UK or via Western Union etc. They then get to "keep" their cut of the deal.

    No scammer is going to send money unsolicited to a random account. A lot of overseas students sell their accounts too because criminals will offer them good cash and the student knows they are not coming back to the UK.

    Even the most basic of due diligence would raise a red flag for someone but sadly a lot of students are naive and think its a legitimate job or there won't be any consequences. Of course, as soon as they get a fraud marker from CIFAS and can't get any form of credit or account for years they bleat innocence. Sorry, no sympathy here.
  • colsten wrote: »
    Are you looking for a problem for your solution? How many people have their account locked after they notified their bank of an unwanted payment made into their account? I don't think I have seen any reports of such blockings
    I guess I’m thinking of things like this:
    https://forums.moneysavingexpert.com/discussion/comment/73478815#Comment_73478815


    Still...just my musings, you either agree or not.:)
    I came into this world with nothing and I've got most of it left.
  • mgdavid
    mgdavid Posts: 6,711 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    I guess I’m thinking of things like this:
    https://forums.moneysavingexpert.com/discussion/comment/73478815#Comment_73478815


    Still...just my musings, you either agree or not.:)

    IN what way does the post you quoted match the scenario in your OP?
    The payment wasn't unsolicited, the receiver provided the source details of the payment.
    The questions that get the best answers are the questions that give most detail....
  • Yet his account was still frozen. I give up. Carry on, pedants.:rotfl:
    I came into this world with nothing and I've got most of it left.
  • I think you were right in your OP. Except I'd have used the word 'simple' rather than simplistic.
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