NEWS & ADVICE : CREDIT CARDS
Money muling: big risk to customers and banks
By Ankit Sharma
Dec 21, 2010
Print    Email    RSS   

Money laundering activities have increased manifold in the recent times causing potential threats to both banks as well as customers. The RBI has alerted both customers and banks against such activities.

Customers have been warned not to fall prey to lucrative offers coming on the web giving commissions for money transactions from their bank accounts. This way the customer unknowingly falls prey to such crime known as money muling. The customer whose bank account is used is referred to as the 'money mule.' However there have been cases where customers are also party to the crime on their free will.

"Of late, it has been brought to our notice that money mules can be used to launder the proceeds of fraud by criminals who gain illegal access to deposit accounts by recruiting third parties," said an RBI official. "The third parties may be innocent or they could be complicit in the crimes."

These money mules when caught get their accounts suspended which leads to financial losses on the part of the bank.

"People can fall into such a trap if they are greedy. They may feel there is nothing illegal in such a scheme and end up acting as conduits in money laundering," the official said.

 

 


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Internet banking: does it put your money...
Make more out of your credit card with...
Kinds of auto insurance coverage
Kisan Credit Card: Allowing easy credit...
Carnival of Indian Personal Finance Blogs #3


I have not received my November month statement , why ?
Good Morning, i forgot my FCMB Account Number and...
Radhey@09646870399 @Escoℛts In#Chandigarh...
Radhey@09646870399 @Escoℛt In#Chandigarh...
Radhey@09646870399 @Call#Giℛls In#Chandigarh...

NEWS THIS WEEK
91st Founders day of the Karnataka Bank Feb 18, 2015
Banks on strike from 25th February Feb 16, 2015
SBT bank postponed the Open House meet Feb 13, 2015
Yes bank planning to line up for credit card portfolio Feb 12, 2015
Pocket banking – new app by ICICI bank Feb 11, 2015
News Archive