Money laundering activity news 24 October 2008 Sophisticated fraud aims to groom UK money mules

The Office for Fair Trading (OFT) has warned that UK citizens should be alert to a sophisticated fraud that aims to involve its victims in money laundering activity. The scheme, currently under investigation by the City of Westminster Trading Standards Service, targets elderly people. Potential victims are telephoned and told that they have won large cash prizes in Canada, but must make refundable release payments before the prize can be released. Unlike similar schemes, this fraud grooms some of its victims into money mules by passing their details to other victims, describing them as agents; the agents receive money from victims, being told they are sponsors making contributions to the agents release fees. The illegally-acquired funds are then transferred electronically to Canada. The layering stage of the money laundering process, where the proceeds of crime are transferred through a series of bank accounts, is therefore performed by the victims of the scheme. The OFTs Director of Consumer Protection said, Prize draw scammers are becoming ever more sophisticated and devious in their attempts to con victims out of their life savings. It is despicable that the scammers are exploiting innocent victims to launder money and help defraud other vulnerable people. 22 elderly people caught up in this money laundering activity have been identified by the Trading Standards Service, and their losses have been estimated as surpassing £350,000.

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