At the individual level, many people are motivated by greed and willing participants in such crimes. Sometimes, a person can also become an unwitting participant in a money-laundering operation.
Someone who allows his bank account to be used for money laundering is referred to as a ‘money mule’. Says Prashant Mali, president and founder, Cyber Law Consulting: “A money mule is a person whose account is compromised and used by a fraudster. This can happen with or without his knowledge.”
In the online world, the modus operandi for such an operation could be as follows. A potential money mule could be offered a job. The job description says it’s financial management work and requires the employee to transfer funds.
Says Mayur Joshi, chief executive officer, Indiaforensic, a company engaged in the prevention, detection, and investigation of frauds: “Under the pretext of an online job scheme, fraudsters ask people to use their existing personal bank account, or open a new bank account in their name, to receive money from someone they have never met in person. The mule is instructed to transfer money to a designated person or account. He may be told to keep a portion of the money transferred or may be paid a fee separately.” The victim deludes himself into thinking he is doing a job.
Some people willingly participate in such operations. Says Mali: “They get around 10 per cent of the money deposited in their account. When an account is used with a person’s consent, he becomes an abettor, and is liable for the same punishment as the fraudster.” Many people get lured without fully understanding the implications. Says Ritesh Bhatia, Mumbai-based cybercrime investigator and cybersecurity consultant: “To many teenagers, housewives, and senior citizens, 10 per cent appears to be a very attractive return just for renting out a savings account.”
Even dormant bank accounts, which people leave behind when they switch jobs, are sometimes misused for conducting money-laundering activities, with the connivance of dishonest bank staff.
What are the red flags to watch out for? Know that a legitimate company will never ask you to use your personal bank account for transferring its money. Says Joshi: “Do not accept a job offer where you are asked to do this sort of a thing.”
Also, never share your financial details with anyone you meet online. And close all dormant and unused accounts. In the offline world, be careful while procuring photocopies of know-your-customer documents. Says Bhatia: “If you are not watchful, the photocopier operator could take an extra facsimile and sell it in the market.” Those documents could be used to open a bank account, which could then be used for money laundering.
 "All you wanted to know about banking frauds")