Mule Activity: Find the Mules and Stop the Fraud

The latest Aite Group research finds that more than 80% of fraud executives interviewed believe that more can and should be done to mitigate the risk of mule activities in the industry.

Boston, April 28, 2020 — Many fraud executives point to trends unfolding in the U.K. as a harbinger of what’s likely to happen in U.S. markets as a function of increasing scams and the adoption of faster payments. A number of promising innovations are emerging from identity verification vendors and consortia-based solution providers that could make a significant impact on mule interdiction. Mule Activity: Find the Mules and Stop the Fraud, a new Aite Group report, explores how FIs in the U.S. and the U.K. markets are grappling with controlling mule activity and the implications of failing to take more deliberate action to stem its growth. 

“If mule activity continues to be neglected as a risk that is actively mitigated by a well-defined and formally ordained program, then faster payments and the trends among fraudsters to target clients with scams such as BEC and unauthorized push payments will fuel significant growth in fraud and, thus, a wide variety of pernicious crimes ranging from terrorism to human trafficking,” explains Trace Fooshee, senior analyst at Aite Group.

This Impact Report examines the driving forces behind the growing level of concern that many fraud and AML executives have about present and future rates of mule activity. It is based on discussions and interviews with fraud executives from 22 of the top 40 U.S. banks and four large U.K. banks conducted from June 2019 through March 2020, as well as vendors in the ecosystem.

To request a press copy of this report or to speak with Trace Fooshee about this topic, please contact us at [email protected].

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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