Rising COVID-motivated Mule Fraud Threats: What can Banks do about it?

Every year, banks shut down tens of thousands of accounts for suspected fraudulent practices. A substantial chunk of these accounts is suspected to be mule accounts and conventional anti-mule fraud systems have had little impact to stop the problem. Whether as complicit players or as victims, money mules are now also laundering funds for organized COVID motivated financial crimes. With the virus continuing to provide opportunities for fraud and money laundering, banks must boost their monitoring and investigation capabilities to counter this growing threat.