Cifas found that more than four in 10 cases of money mules involved victims aged 21 to 30. This age group accounted for 42% of money mule activity in 2020, up from 38% three years ago. It was among the hardest hit by the economic impact of COVID-19, with thousands facing job losses as a result of the pandemic and graduates entering the jobs market at a time of unprecedented uncertainty.

Banks across the UK have said criminals posted fake job adverts on social media, targeting ‘generation Covid’ who are struggling for work. Intelligence suggests criminals are exploiting people’s financial difficulties by using social media platforms, jobs websites and phishing emails to approach them with offers of easy cash.

They will use the promise of earning money quickly to convince individuals to provide their bank details, before asking them to transfer the funds received to another account and keep some of the cash for themselves, making them a money mule.

The phenomenon is part of a larger trend of fraudsters exploiting the COVID-19 crisis.

Money launderers wish to move funds through accounts to make it look less suspicious to banks. Money mules are given a cut for allowing their account to be used. Often they ask no questions over the source of the money.

Most people involved in such fraud are young men. Cifas has said those who try to quit may be threatened with violence by the criminals who recruited them.

If they are caught, fraudsters could face prison, as well as future difficulties with their finances, such as having their bank account closed and finding it difficult to apply for credit in the future, such as mobile phone contract.

According to the latest figures published by Cifas, there were 17,157 cases of suspected money muling activity involving 21 to 30-year-olds in 2020, a 5% increase on the previous year.

Katy Worobec, managing director of economic crime at UK Finance, said: “Criminals are cruelly preying on ‘generation Covid’ and those struggling to find work at this difficult time, by using fake job adverts online to recruit people as money mules.

“We would urge everyone to remain cautious. At the same time, online platforms must take swift action to detect and take down content being used to promote money muling activity.”

Mike Haley, CEO of Cifas, added: “Allowing your bank account to be used to transfer funds is illegal. Although transferring funds doesn’t feel like it’s doing any harm, the money you’re being asked to move often comes from scams and crimes committed against innocent members of the public.

“We’re now seeing more variations of this type of activity including mules being asked to buy cryptocurrencies or gift cards to mask the stolen funds, making it even more difficult for organisations to trace this money and return it to victims.

“Banks now have sophisticated technology to detect mule activity. When mules are caught, they can expect their bank accounts to be closed and face great difficulty in obtaining credit, mobile phones or loans in the future. It is vital that you keep your bank account to yourself and not be fooled into taking part in this illegal activity.”