Cayman banks fight back against ‘money muling’

The Cayman Islands Bankers Association is launching a campaign to help Cayman bank account holders avoid a growing financial fraud.

‘Money muling’ is when someone uses their personal bank account to handle money for an unknown third party. Often the fraud begins with a message via social media, that asks the bank account holder to receive, send or withdraw money in return for a payment.

It might seem harmless, but the money is typically linked to criminal activity, said the association via a 22 Dec. press release. And Cayman bank account holders who agree to handle the money “may be committing a serious offence”.

“Criminals are increasingly using real people’s bank accounts to move illegal funds and many individuals do not realise the serious consequences until it is too late,” said Richard Lewis, the association’s chief operating officer. “This campaign is about giving customers the information they need to protect themselves, their accounts and their futures.”

The association strikes back

Now the association and its six retail bank members are fighting back. It has launched a consumer awareness campaign to help customers recognise and avoid the scams. The campaign will be active on social media channels, which is where the fraudulent messages are sent, while also being shared by each bank.

The campaign’s key message is that legitimate businesses would never ask individuals to use their personal bank accounts to move money for others. It will also highlight some of the most common red flags, such as being offered a percentage of transferred funds or being instructed to hide details from a bank.

The association is encouraging customers to ignore these messages and immediately contact their banks. Customers are also advised to report suspicious activity to the Financial Crime Investigation Unit of the Royal Cayman Islands Police Service by email at [email protected] or by phone at 949-8797.

“Your bank account is tied to your name and your identity,” Lewis added. “Protecting it is a key part of banking safely in today’s digital environment.”