The ‘Easy Money’ trap: How that $500 side hustle could cost you your freedom

The promise sounds almost too good to be true: earn $500 for simply letting someone use your bank account, with minimal effort required. But this ‘harmless’ arrangement has landed thousands of Australians in serious legal trouble and helped international crime syndicates steal billions from unsuspecting victims.

What’s being marketed as easy money is actually money muling – and Australian gangs pay their mules just $500 AU for the unrestricted use of their bank accounts ^[1]. The consequences, however, extend far beyond the modest payment, with participants facing anywhere from 12 months to life in prison ^[2] if convicted.

The scale of the problem has exploded globally, with nearly 2 million money mule accounts reported from 257 financial institutions across 21 countries in 2024 alone ^[3]. In Australia, authorities detected 9,000 mule accounts in the 2023-24 financial year, and nearly 13,000 in the 2024-25 financial year – a concerning upward trend that shows no signs of slowing.

While money mule recruitment often focuses on younger demographics like international students, older Australians are increasingly finding themselves in the crosshairs of sophisticated criminal operations. The reasons are deeply troubling.

Australians aged 65 and over reported the highest losses of any age group at $99.6 million in 2024 ^[4], making them attractive targets for criminals seeking both victims and accomplices. Scammers specifically target older Australians through romance scams, employment fraud, and family impersonation schemes.

The connection becomes particularly sinister when considering recent 'Hi Mum' scams that have swept Australia. More than 1,150 Australians fell victim to these family impersonation scams in recent months, with total reported losses of $2.6 million ^[5]. Most concerning, over two-thirds of family impersonation scams have been reported by women over 55 years of age, accounting for more than $1.4 million in losses ^[5].

These scams often work as a pipeline - victims of romance or family impersonation scams are sometimes later recruited as money mules when scammers convince them to help 'recover' losses or assist with 'legitimate business transactions'.

The romantic notion of easy money evaporates quickly when faced with Australia's justice system. Recent prosecutions demonstrate authorities are taking money muling seriously, regardless of whether participants claim ignorance.

In December 2024, a 24-year-old Melbourne man was sentenced to 18 months' imprisonment after pleading guilty to laundering $208,822 in criminal proceeds through his bank accounts ^{[6] [7]}. While he was released on a recognisance order to serve the sentence in the community, the conviction will follow him for life.

This case represents just one of hundreds being prosecuted across Australia. The penalties reflect the seriousness with which courts view money laundering, even when defendants claim they didn't understand the true nature of their activities.

Australian financial institutions aren't sitting idle while criminals exploit their systems. The nation's major banks have launched an unprecedented technology offensive against money mule networks.

Australia's big four banks – ANZ, CBA, NAB, and Westpac – along with insurer Suncorp have joined a first-of-its-kind interbank intelligence-sharing network designed to block payments to accounts associated with fraud or scam activities ^[8].

This system, called BioCatch Trust Australia, represents a world-first approach to real-time fraud prevention. The technology analyses behavioural patterns and device data to identify suspicious accounts before money can be transferred to criminals.

The results have been impressive. One bank reportedly shut down 90% of identified mule accounts before any fraudulent activity occurred, demonstrating how quickly financial institutions can act when equipped with the right tools.

Money mule recruitment rarely appears as blatant criminal activity. Instead, scammers disguise their approaches through seemingly legitimate channels, making it crucial to recognise the warning signs.

The best defence against money mule recruitment starts with understanding that legitimate businesses and relationships never require financial transactions to be made using personal accounts.

The fight against money mule networks extends beyond individual vigilance. Australian authorities and financial institutions are coordinating unprecedented efforts to disrupt these criminal operations.

The Australian Federal Police has increased prosecutions and public awareness campaigns, while AUSTRAC has issued specific guidance to help banks identify suspicious account activity. Meanwhile, telecommunications companies are working to block scam messages before they reach potential victims.

New legislation currently under development will impose mandatory codes of conduct on banks, social media platforms, and telecommunications providers, with fines up to $50 million for companies that fail to meet scam prevention requirements.

If you suspect you've been approached by money mule recruiters or believe you may have inadvertently become involved in such a scheme, immediate action is crucial.

Contact your bank immediately to discuss any suspicious account activity or unexpected deposits. Banks have sophisticated fraud detection systems and can often prevent further criminal activity if alerted quickly.

Report incidents to ReportCyber at cyber.gov.au, Australia's official cybercrime reporting system. Even if you haven't lost money, reporting helps authorities track criminal networks and protect others.

For emotional support dealing with scam experiences, Lifeline (13 11 14) and Beyond Blue (1300 22 4636) provide confidential counselling services specifically trained to help scam victims process these traumatic experiences.

The promise of easy money will always be tempting, especially during financially challenging times. But the reality is that legitimate opportunities requiring minimal effort and offering substantial rewards don't exist. What does exist are sophisticated criminal operations designed to exploit trust, desperation, and goodwill.

By understanding the tactics used by money mule recruiters and maintaining healthy scepticism about too-good-to-be-true opportunities, you can protect yourself and your loved ones from becoming unwitting accomplices in serious crimes.

Have you or someone you know encountered suspicious job offers or unusual financial requests? Share your experiences in the comments below - your story could help protect fellow readers from falling victim to these increasingly sophisticated scams.