TymeBank cautions consumers about mule accounts

Johannesburg 27 October 2022

TymeBank, South Africa’s fastest growing digital bank, is cautioning customers and consumers in general not to let other people use their bank accounts, even if they are promised payment in return. If you do, you may be considered a money mule, as your account is used as a mule account.

“There’s a risk that you may be helping criminals to commit crimes and hide the money they have illegally obtained, something that could see you being arrested for being a money mule and can also damage your credit and financial standing,” warns TymeBank’s Head of Enterprise Risk and Fraud, George Wandsella.

According to Wandsella, the increase in fraudulent account openings and transfers needs to be seen in the context of the recently published SABRIC Annual Crime Statistics, which indicate that banking on digital platforms “now exceeds all other transaction channels in South Africa and is also the safest.”

“The rise in online transactions has been accompanied by a noticeable increase in mule account schemes in South Africa in the last few years, with criminals taking advantage of people’s vulnerability with the promise of easy money. Targets are often approached online, or via social media platforms, with young people often lured into these schemes,” he says.

“TymeBank has robust security systems in place and besides protecting customer accounts, our technology also helps us monitor suspicious activity, but criminals are always looking for ways to hide their ill-gotten gains.”

The methods typically used by criminals

The fraudster asks the unsuspecting account holder to transfer money on their behalf into a third-party account in exchange for a fee. Often the third-party account is at the same bank, so the transaction can be processed in real time.

Someone approaches you and asks you to open a bank account online and then allow the other person to use it. Often the excuse is that they are unable to open their own bank account for some reason that sounds innocent.

Criminals use lost or stolen IDs to open mule accounts. “Customers also need to play their part by following some simple rules,” says Wandsella. “Besides helping to fight the worldwide problem of money-laundering, it may also keep you out of jail.”

How to avoid becoming a money mule:

• Don’t share your financial details or give access to your bank account to anyone you don’t know and trust.
• Don’t trust emails, texts or similar communication from someone that promises you money in exchange for doing very little.
• Be careful of opportunities offering you a way to make money fast and easily. If this happens, don’t accept the offer, and report it to the police.
• You should report a lost or stolen ID to the South African Fraud Prevention Services (SAFPS) on their website (www.safps.org.za) to prevent fraudsters opening a bank account or credit facilities with your details.
• Forewarned is forearmed, so stay informed about the latest banking fraud and scams. You can visit the TymeBank website for some useful content on how to protect yourself from fraud and scams.

Key Features of TymeBank’s offering

TymeBank offers a zero monthly fee transactional account to consumers from the age of 16* and sole proprietors. Features available on this account include a money transfer service, a free GoalSave tool, as well as MoreTyme™, the bank’s interest-free buy now pay later product. The GoalSave tool allows customers to open up to 10 savings pockets, earning a maximum interest rate of 8% per annum, with the option to access the money immediately.

Other products include affordable medical insurance (TymeHealth) and a credit card. The bank recently announced an expanded business banking offering.

About TymeBank

TymeBank is currently one of the world’s fastest-growing digital banks, having acquired well over 5.5 million customers since launching in February 2019. The bank is founded on simplicity, transparency and affordability and is designed to make digital banking accessible and affordable to all South Africans across the economic spectrum.

TymeBank is majority owned by Dr Patrice Motsepe’s African Rainbow Capital (‘ARC’). Recent investors include Tencent, an internet and technology company based in China and CDC Group, the UK’s development finance institution and impact investor. Others include UK based Apis Growth Fund II (‘Apis’), a fintech private equity fund based in the UK, JG Summit Holdings (JG Summit) a Philippines based conglomerate owned by the Gokongwei family, African Fig Tree (AFT), a ring-fenced vehicle established by the founders along with key individuals, and the Ethos AI Fund.

TymeBank is a member of the Tyme Group of companies with headquarters in Singapore.

For more information, please visit https://gotyme.co.za

Issued by Aprio on behalf of TymeBank