“Money mules” renting out their bank accounts are helping criminals launder millions of dollars in Australia.

The Australian Federal Police and the Australian Banking Association are urging Australians to not share their banking details or loan their account out, as they step up efforts to curb this criminal activity.

Money mules are people who – knowingly or unknowingly – are recruited by criminal syndicates to transfer illicit money in and out of their personal accounts to make the funds appear legitimate to authorities.

Money mules may also rent or sell their account for a payment.

This routing of money through a legitimate Australian bank account obfuscates the flow of the dirty cash, making it difficult to track.

The mules are paid anywhere from $200 to $500 for the use of their personal accounts and may receive a commission on funds received into their accounts (typically about 10 per cent).

Criminals target potential money mules through social media, messaging or gaming platforms, chat forums, online advertisements and even in face-to-face meetings.

Job and romance scams and even outright threats have been used to gain access to people’s bank accounts for fund transfers.

Criminal networks are also increasingly instructing money mules to move funds through cryptocurrency exchanges/ATMs (CATM) and global money transfer apps, as these platforms enable faster and more discreet transfers than traditional banking institutions.

In these instances, money mules are instructed to withdraw physical cash from their account and deposit it into a CATM, where the money is sent to a digital wallet controlled by the criminal.

According to Scamwatch, $141.7 million was lost to scammers via bank transfers last year.

Money laundering convictions carry a maximum penalty of life imprisonment in Australia.

AFP Detective Superintendent Marie Andersson said money laundering was an integral part of organised crime.

“It is illegal to rent, buy or sell bank accounts, and doing so supports the criminal ecosystem,” Andersson said.

“Your account may be housing money derived from scams, extortion, drug trafficking and terrorism.”

ABA Chief Executive Anna Bligh said mule accounts were a key part of a scammer’s business model and banks were focused on shutting them down.

“I urge Australians to steer clear if you’ve seen an advertisement or are approached to rent or sell your bank account,” she said.

“There’s a good chance you’re being recruited to hide the profits of criminal activity.”

If you are concerned your identity has been compromised, contact the national identity and cyber support service IDCARE.