Australian authorities warn of rising money mule scams targeting students

Banks, researchers, and law enforcement agencies in Australia are warning families and students about a growing wave of “money mule” scams targeting young people. These scams usually promise quick and easy money in exchange for access to a bank account, identity documents, or help moving money between

According to ANZ’s Customer Protection, students and unemployed people accounted for roughly one-third of scam and fraud fund recipients identified between September 2025 and March 2026.  During that same period, the bank flagged around 4,000 high-risk accounts for further investigation linked to suspected money mule activity.

Key takeaways

• Money mule scams often target students and young adults, particularly those living away from home or studying internationally
• Scammers may offer “easy money” for using a bank account
• Criminals try to collect identity documents like passports or driver's licenses
• Recruitment often happens through social media, messaging apps, fake jobs, or in person
• Young people may not realize they are helping criminals launder money

What is a money mule scam?

A money mule scam happens when someone is persuaded, manipulated, or recruited into moving money for criminals. Sometimes the person knows they are allowing money to pass through their account in exchange for payment. In other cases, they believe they are accepting a legitimate job offer, investment opportunity, or online side hustle.

Scammers often promise several hundred dollars — sometimes with extra “commission” — for what sounds like a simple favor.

A student may be asked to:

• Receive money into their account and transfer it somewhere else
• “Loan” their bank account temporarily
• Open a bank account for another person
• Share online banking details
• Hand over identity documents such as passports or driver's licenses

ANZ Senior Manager, Complex Investigations, Marc Broome, said: “Scammers are deliberately targeting young people who may be financially vulnerable or unfamiliar with Australian laws. Selling or ‘loaning’ your bank account or identity puts you at risk of being linked to money laundering and other crimes.”

Related: What to do if your child gets scammed online: A parent’s step-by-step guide

How scammers approach students

Scammers often target students directly through Instagram, TikTok, Snapchat, Facebook, WhatsApp, Telegram groups, dating apps, online investment communities, fake job advertisements, and even university social circles or student accommodation areas.

Some criminals spend days or even weeks building trust before asking for help. Others pretend to be successful entrepreneurs, recruiters, investors, or fellow students trying to offer a quick opportunity. They promise “easy remote work,” “quick cash,” “instant payment,” or “commission” for using a bank account temporarily.

Related: 5 Scams Australians Are Likely to Face in 2026 — and How to Prepare

Warning signs of a money mule scam

Even if a student believes they are only helping someone temporarily, they may still become connected to fraud or money laundering activity without realizing it.

Here are some common red flags families and students should watch for:

• A “job” that asks to use your personal bank account
• Requests to receive money and transfer it elsewhere
• Offers of fast or easy money for very little work
• Promises of “commission” for moving money between accounts
• Pressure to act quickly or keep things secret
• Requests for passports, driver licenses, or banking details
• Online friendships that suddenly involve money
• Fake recruiters or investors contacting students through social media
• Messages claiming you can “help” someone by lending your account temporarily

If something feels rushed, secretive, or too good to be true, it’s worth stopping and checking before responding.

What to do if your child has been targeted

The consequences of money mule scams can be serious and long-lasting. A student who becomes involved may face frozen or closed bank accounts, financial investigations, identity theft, credit problems, and difficulties accessing banking services in the future. In some cases, there may also be legal consequences. Many young people only realize something is wrong after suspicious transactions appear or the bank contacts them directly. The experience can also cause significant stress, fear, and emotional pressure.

If you believe your child may have shared banking details, identity documents, or participated in suspicious money transfers:

• Contact the bank immediately
• Stop all communication with the suspected scammer
• Change passwords and enable multi-factor authentication
• Check bank accounts and devices for suspicious activity
• Report the incident to local authorities
• Contact university support or cybersecurity teams if relevant
• Watch for signs of identity theft or unusual financial activity

The most important thing is to act quickly and avoid panic or shame.

“If you think you may have been caught up in a money mule scam, it’s vital to report it as soon as possible. If you have been unknowingly tricked and caught up in a scheme, coming forward does not mean that you will be in trouble. Instead, it helps banks, law enforcement, and government agencies prevent you and others being further exploited by these criminals.”, says Griffith University scam expert Associate Professor Jacqueline Drew.

Related: 10 Gumtree scams in Australia: How to stay safe

What families can do to help protect students

As children become more independent, online safety becomes less about control and more about trust, and support. University students are often navigating financial pressure, new social circles, and unfamiliar situations for the first time, which is exactly why scammers target them.

Families can help by:

• Talking about scam tactics before university starts
• Encouraging children to question “easy money” offers
• Making it safe to ask for help without fear of punishment
• Teaching children to verify jobs, recruiters, and investment opportunities carefully
• Reminding them never to share banking access or identity documents

It also helps to encourage a “pause before reacting” habit. Many scams succeed because victims feel rushed, pressured, embarrassed, or afraid of missing an opportunity.

Free scam-checking tools can be very useful. If a student receives a suspicious message through social media, email, SMS, WhatsApp, Gumtree, or another platform, Bitdefender Scamio analyzes whether it may be part of a scam. If they are unsure about a link, the free  Bitdefender Link Checker verifies where it actually leads before they click.

Protection tools also matter when children move away for university and parents no longer see what’s happening day to day online.

A Bitdefender Family Plan detects phishing links, scam messages, malicious websites, and suspicious activity across devices, even while young adults are living independently.

Find out more about how Bitdefender Family Plans can support your family’s digital safety.

FAQs

What is a money mule scam?

A money mule scam happens when someone is used to transfer or receive money connected to criminal activity. Some people knowingly participate for payment, while others are manipulated through fake jobs, online relationships, investment opportunities, or “easy money” offers without fully understanding what is happening.

Can someone get in trouble for being a money mule?

Yes. Even if a person did not realize they were helping criminals, moving illegal funds can lead to frozen bank accounts, financial investigations, identity theft issues, damaged credit, and possible legal consequences.

How do money mule scams start?

Many money mule scams begin through social media messages, fake job offers, dating apps, investment groups, or online friendships where scammers slowly build trust before asking for financial “help.”

How do banks detect money mule activity?

Banks use fraud detection systems to monitor unusual account behavior. This can include large or unexpected transfers, money quickly moving between accounts, suspicious international transactions, or accounts suddenly receiving funds from multiple unknown sources. Banks may freeze or investigate accounts if they detect activity linked to scams or money laundering.

How can students avoid money mule scams?

Students should avoid sharing banking details, identity documents, or access to financial accounts with anyone. It’s also important to be cautious of “easy money” offers, fake remote jobs, or strangers asking for help transferring money. Verifying opportunities carefully and talking to a trusted adult or bank before acting can help prevent scams.

How do you recognize a money mule scam?

Common warning signs include offers of quick cash for little work, requests to use your bank account, pressure to act quickly, promises of commission for transferring money, fake recruiters contacting you on social media, or strangers asking to “borrow” your account temporarily. If something feels secretive, rushed, or too good to be true, it’s worth stopping and checking first.