FRAUDSTERS are using commission schemes to recruit money mules for their illicit activity, Security Bank Corp. said.

“They usually carry out their recruiting activities through social media groups or by physically approaching people offering to buy their bank accounts for P1,000 to P5,000,” the bank said in a statement on Monday.

An account holder becomes a money mule once they lend or sell their accounts that eventually become involved in receiving deposits or fund transfers from illegal sources, Security Bank said.

It reminded the public that being a money mule is considered a laundering activity.

“The appeal of cash commissions from becoming a money mule is not worth being involved in criminal activity. Keep your bank account details to yourself much like any other personal and confidential information,” it said.

The bank told its clients to refrain from sharing their account information to anyone, even to known third parties who ask for access.

“Whether willingly or unknowingly, when an account holder lets their account be used by another person, they are risking the possibility of being a money mule and an accomplice to crime,” the bank said.

House Bill 10689 or the Financial Accounts Regulation Act seeks to impose punishment against money mules, social engineering schemes, and economic sabotage. Under the bill, persons found guilty of acting as a money mule may face imprisonment of six months to six years or a fine of P100,000 to P200,000, or both.

Earlier, the Bank of the Philippine Islands also warned on increasing money mule accounts as culprits have been taking advantage of increasing online transactions due to the pandemic.

The SIM (subscriber identity module) Card Registration Act, which has already been approved by both houses earlier this month, is also expected to tighten guard against money mules. However,  some technology experts have warned this could endanger privacy and could affect democratic rights.

The Bankers Association of the Philippines partnered with the Department of Justice earlier this month for information sharing and training to battle cybercrime as losses from bank fraud during the pandemic hit over P1 billion.

Security Bank’s net income in the third quarter of 2021 increased by 71% year on year to P1.715 billion. This brought its nine-month net income to P4.8 billion, down by 28.3% from the same period of 2020.

The bank’s shares closed at P112.70 apiece on Monday, down by P1 or 0.9% from its previous finish. — L.W.T. Noble

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