Per the information detailed in the press release, Experian Mule Score looks to assist companies with identifying and closing money mule accounts that are leveraged to run scams and house fraudulently obtained funds.
Money mules are individuals who have agreed to let their bank accounts be leveraged by criminals in exchange for cash. Based on Experian insights, 42% of first-party current account fraud is now mule-related, with the fraud rate for current accounts having a 13% increase within the first three months of 2023. Money laundering is estimated to cost the UK economy over GBP 100 billion yearly, with Authorised Push Payment (APP) fraud losses having reached GBP 485 million in 2022.
Furthermore, the funds deposited in these accounts are oftentimes the proceeds from APP fraud – with the mule being tricked into having the money transferred to varied mule accounts to have the money origin hidden – before then being distributed onto the fraudster’s own accounts. Banks together with other account providers currently don’t have information about where the money is being received from or sent to apart from the confirmation of the payee, which makes it difficult for them to identify and investigate accounts that could be leveraged that way.
Experian Mule Score seeks to solve this issue. The machine learning-powered solution enables banks to assess their entire portfolio to spot questionable account activity in an easy manner by analysing account opening history and turnover activity, Experian bureau data, and the modelled characteristics of over 200,000 confirmed mule cases. Per the announcement, in proof-of-concept trials, the solution was able to accurately identify more than 50% of the highest-risk mule accounts. The solution is set to help banks avoid onboarding suspicious accounts at the point of opening, decrease fraud losses and operational costs, support at-risk consumers, as well as prevent fraudulent funds from entering the mainstream financial system.
Commenting on this, Eduardo Castro, Managing Director, Identity and Fraud, Experian UK&I, advised that the fraud and financial crime level in the UK comes as a threat to FIs and their customers, and due to its data, analytics, and tech, Experian is believed to be positioned to help. The company is committed to helping eliminate financial crime and ensuring safe financial access. The spokesperson added that Mule Score offers financial companies an extensive view of account activity, helping prevent them from onboarding potential mule accounts and detect opened accounts that are suspicious.
Funds held in a mule account are usually moved between two and three others ahead of being transferred to international accounts, or sometimes crypto wallets, and then reintegrated back into the UK financial system. Accounts being leveraged for mule activity tend to be newly opened, but the holder will have several older accounts that can still be used to transfer funds should the newer one be closed.
Per the information provided in the announcement, Experian Mule was developed by Experian DataLabs, an in-house team of data scientists that looks to drive innovation by leveraging the most up-to-date data analysis techniques to build products and solutions that help businesses address multiple challenges across sectors.
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