GCash: “The scammers can do anything they want with the accounts and not be liable for the consequences”
GCASH — The Ayala-led fintech company recently warned the public against scammers who are using a new breed of money mules.
In a statement issued last September 28, the fintech company said warned that scammers are using money mules in impoverished areas in order to withdraw and transfer illegally obtained funds.
The company noted that a new form of money mule is surfacing wherein scammers go to poor communities and tell people that they can earn money if they register to GCash using their phones.
“These individuals ignore all the warning signs that this is an illegal activity, but the worst thing is they no longer possess the actual accounts,” GCash Chief Risk Officer Ingrid Rose Ann Beroña said. “The scammers can do anything they want with the accounts and not be liable for the consequences.”
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In order to fight the problem, the fintech company rejected or proactively barred accounts detected to be used for money mule activity. The company also worked with law enforcement agencies in order to arrest scammers encouraging money mule activity.
Based on the report, the most recent was an entrapment operation carried out through a collaboration of Globe Telecom, GCash, and the Philippine National Police (PNP), which led to the arrest of a person selling more than 500 GCash-registered SIM cards.
so far, GCash has blocked 780,000 accounts because of identity fraud, including money mule issues since January 2022.
What is a money mule?
A money mule is a verified account owner of a bank or other financial account used by a third party in order to obscure the source of the illegally obtained funds and to keep their identity a secret.
“These mules usually receive a commission or a fee for the use of their accounts,” Globe Telecom said in an e-mailed statement obtained by BusinessWorld Online.
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