- The tool combines Artificial Intelligence, machine learning, and behavioural analysis to detect and stop suspicious activity before it can cause serious harm.
- Mule accounts are one of the most commonly used methods by criminals to commit financial fraud. In many cases, account holders are unaware that they are facilitating illicit activities.
- According to a study by Nasdaq Verafin, an estimated $3.1 trillion in illicit funds flowed through the global financial system in 2023.
We are excited to announce the launch of a new platform within our product and service portfolio, focused on detecting mule accounts and combating financial fraud.
This tool employs a combination of Artificial Intelligence, machine learning, and behavioural analysis to identify and stop suspicious activity before it causes irreparable harm. Through pre-fraud analysis, it detects subtle indicators by evaluating irregular patterns and behaviours. By analysing a range of data, the system can identify suspicious connections, intervening proactively to prevent fraudulent transactions.
“In a world where financial threats are becoming increasingly sophisticated, proactively detecting mule accounts has become a fundamental necessity. We not only identify these accounts quickly and accurately but also anticipate fraud before it occurs. We cannot allow cybercriminals to exploit citizens’ accounts for illicit activities. Thanks to our ability to mitigate risks and safeguard information flows, Facephi is taking a step further in proactive security management for the financial sector,” said Jorge Sanz, General Director at Facephi.
The benefits of using such solutions go beyond cost savings, as they help protect legitimate users from being unknowingly involved in fraudulent schemes. The system enhances security for both customers and businesses by leveraging AI, which surpasses the limitations of traditional controls, and automates fraud detection, minimising manual investigations and optimising resources.
Pre-fraud signal analysis
The system monitors and analyses suspicious signals and key fraud indicators from the moment an account is opened. This includes advanced income analysis, unusual patterns in data registration, and tracking interconnected devices that may be linked to multiple accounts.
Additionally, it conducts intelligent honeypot analysis to detect fraudulent networks. These early warning signals allow financial institutions to identify criminals and their networks before they initiate fraudulent activities, providing proactive protection from the outset.
Account classification
Real-time classification and sub-classification of accounts are crucial for detecting fraud before it occurs. This solution identifies abnormal behavioural patterns in account transactions and activities, assigning each account a risk category based on its profile. This allows institutions to assess the potential role of each account within fraudulent schemes—whether as accomplices or victims—enabling proactive intervention to prevent fraudulent transactions.
Consortium intelligence and collaborative fraud prevention
Fighting fraud requires a collective approach. This solution enables financial institutions to collaborate securely in fraud detection without compromising data privacy. Through advanced consortium management, institutions can share key information to identify fraudulent networks and prevent large-scale attacks.
A growing challenge for the financial sector: How do mule accounts operate?
According to a Nasdaq Verafin study, over $3.1 trillion in illicit funds flowed through the United States in 2023. Mule accounts have become a critical component of financial fraud schemes. These accounts, used to move money obtained through fraudulent means, pose an increasing challenge for banks, fintech companies, and regulatory bodies. Despite ongoing efforts to combat them, their continuous evolution and growing sophistication remain a threat to the stability of the global financial system.
The prevalence of mule accounts as a cyber fraud tactic is becoming increasingly evident. Criminals use them in different ways, including accounts belonging to unsuspecting victims, willing accomplices, or accounts created using fake identities.
The role of money mules—or deceived individuals—is to move, launder, or obscure illegally obtained funds by transferring capital between multiple accounts. In some cases, the funds are withdrawn in cash or converted into cryptocurrencies, making tracking more difficult. Since mules are merely intermediaries, they often disappear once the transaction is completed.
