'Money mule’ operation guided by NFIB intel
A major offensive against organised crime groups has targeted the ‘money mules’ they use in their attempts to launder stolen funds through UK banks.
A multi-agency task force, acting on NFIB intelligence, entered 21 addresses across London and the Home Counties, arresting 13 people, of whom two have since been charged and eight remain on police bail.
They are believed to be part of criminal networks setting-up bank accounts for siphoning the proceeds of cyber crime and benefit fraud.
One of those arrested is due to be deported and no further action will be taken against two.
Operation Ozone saw several agencies working side-by-side, led by the City of London Police and assisted by the NFIB. MPS and SOCA officers were on the raids, supported by the Department for Work and Pensions (DWP) and the UK Border Agency (UKBA).
Agents were checking for immigration offences, identity theft and illegally obtained National Insurance numbers.
‘Money mules’ (or money transfer agents) are used by organised crime groups to use existing or newly set-up bank accounts to receive funds obtained through phishing and malware scams and tax and benefit fraud.
Most of these funds are quickly withdrawn and handed back to the fraudsters. Some mules are recruited by organised crime groups via spam emails and adverts on recruitment websites whilst other co-operate with the fraud groups in opening the accounts.
This operation to target them was born from intelligence-sharing through the new Economic Crime Operations Group (ECOG), established to support the delivery of the National Crime Agency.
The NFIB cross referenced new intelligence against 2.4 million fraud reports held in its system, revealing a series of matches.
This information was combined with intelligence from DWP, HMRC and UK banks to pin-point people and addresses being used to facilitate fraud.
Commander Ian Dyson, from the City of London Police, said:
“This operation is evidence of how multiple agencies from law enforcement and the public and private sector are working in closer collaboration to combat a common enemy; organised crime across the UK.
“Through better intelligence sharing we have made a significant strike against ‘money mules’ laundering the proceeds of wide scale criminality, including cyber crime and benefit fraud.
“Last week helped us to identify strengths and weaknesses in our national response to economic crime. The findings will now feed into the wider process that is shaping the NCA and its Economic Crime Command, due to be launched in 2013.”
Dave White, Head of Fraud at the DWP said:
"Benefit fraud is often associated with other criminal activity and where organised gangs are involved the sums of money can be very large. Joint operations such as this are vital to stop organised gangs stealing money which should be going to those most in need, not lining the pockets of criminals.
"Our investigators work closely with other agencies on intelligence-led operations to crack down on people stealing from the taxpayer."
