Lloyds Banking Group has issued a stark warning after discovering a worrying trend: young people, particularly Gen Z, are being unwittingly recruited as 'money mules' through social media platforms like TikTok.
The bank's data reveals a sharp rise in cases where criminals lure teenagers and young adults into laundering stolen money, often under the guise of easy cash or fake job opportunities.
How the Scam Works
Fraudsters typically approach victims through:
- Fake job ads promising quick money for minimal work
- 'Get rich quick' schemes promoted on social media
- Romance scams where the perpetrator asks for financial favours
Once engaged, victims are instructed to receive money into their bank accounts and transfer it elsewhere, effectively becoming conduits for criminal funds.
Why Gen Z is Vulnerable
Lloyds highlights several factors making younger people particularly susceptible:
- Limited financial literacy compared to older generations
- Greater trust in social media content
- Higher likelihood of responding to 'easy money' offers
- Less awareness of banking regulations and consequences
The consequences can be severe: Those caught acting as money mules may face frozen accounts, difficulty obtaining future financial services, or even criminal prosecution.
Protecting Yourself
Lloyds advises young people to:
- Be sceptical of unsolicited money-making opportunities
- Never share bank details with strangers
- Research any company offering work opportunities
- Speak to a trusted adult or bank representative if unsure
The bank is working with social media platforms and law enforcement to combat this growing threat to young consumers.
