Protecting international students from money mule scams: A growing threat in Australia

In Australia, a sinister trend is emerging. With over 700,000 international students contributing more than $48 billion to the economy annually, organised crime networks are increasingly exploiting these young newcomers. They're turning them into "money mules" to launder illicit funds. According to a June 2024 guidance from AUSTRAC, Australia's financial intelligence agency, criminal groups are targeting vulnerable students with deceptive job offers. These "side-hustles" promise quick cash (up to $500 per transaction) for simple tasks like transferring money.

But these opportunities are gateways to money laundering. Recent warnings from the Australian Federal Police (AFP) in March 2025 highlight a surge in scams disguised as remote work. As of August 2025, reports indicate students are being hit harder than ever, with organised crime exploiting regulatory gaps to recruit them. At Flash Payments, our commitment to a secure financial ecosystem extends to every employee, recognising that combating financial crime like money laundering is an imperative for our entire team, not just our compliance department. This article sheds light on the scam, its alarming prevalence in Australia, and how we are equipped to detect and dismantle it.

What is a money mule, and why are students so vulnerable?

A money mule is someone recruited to transfer illegally acquired funds on behalf of criminals. Whether wittingly or unwittingly, they help launder proceeds from scams, drug trafficking, or cyber fraud. These individuals act as intermediaries, receiving dirty money into their accounts—often disguised as fake job payments or "gifts"—and then forwarding it to scammers after taking a small cut. The consequences for the mules are severe, including frozen accounts, criminal charges, and ruined credit histories, all while the criminals evade detection.

International students in Australia are particularly vulnerable. They arrive in a new country with limited local networks and are often under immense financial pressure from tuition and living costs, which average around $30,000 AUD per year. This unfamiliarity with banking norms and local scams makes them easy prey. Criminals exploit this through social media ads or WhatsApp groups, posing as recruiters for "easy online jobs". A single transfer might seem harmless, with amounts like $200-$500 wired to a "client," but it quickly escalates to handling thousands in suspicious funds. AUSTRAC's 2024 guide notes that non-permanent residents are ideal targets because their temporary visas make them less likely to report issues to authorities, fearing deportation or visa complications.

Common tactics used by criminals include:

• Fake job offers: Ads on platforms like Facebook or TikTok promise flexible work, often requiring "verification" by depositing and withdrawing funds.
• Account sharing: Students are encouraged to open new accounts or share login details; criminals then use fake IDs to bypass KYC checks.
• Layered transactions: Funds are routed through multiple small transfers to obscure their origins, blending legal remittances with illicit flows.

These methods not only launder money but also entangle victims in broader networks. One global operation in 2024 stopped $2.6 million from passing through student-linked accounts alone.

The alarming rise of scams in Australia

Australia's position as a hub for international education has made it a hotspot for this exploitation. AUSTRAC reported a 20% increase in money mule referrals in 2024, with international students comprising up to 40% of cases in major cities like Sydney and Melbourne. The AFP's March 2025 alert warned of "side-hustle" scams targeting university campuses, with criminals personalising pitches using university email lists from data breaches. By August 2025, The Times Higher Education highlighted a "regulation loophole" allowing unchecked recruitment, urging government action to protect students.

The real-world impacts are devastating. A 2025 Veriff report detailed how one Sydney-based ring recruited over 100 Nepalese students, paying them commissions to launder $1.2 million in scam proceeds. Victims often discover their involvement too late—after accounts are flagged and frozen—leading to financial ruin and emotional distress. A Westpac alert noted that new migrants, including students, are 2.5 times more likely to fall victim due to isolation and economic strain.

Collaborative efforts are ramping up. AUSTRAC’s guide calls for banks, universities, and fintechs to share indicators like sudden large inflows from unknown sources or mismatched transaction patterns. The AFP's "Stop Cashing in for Crooks" campaign urged Australians not to rent out accounts, but education remains the strongest key to prevention.

How Flash Payments detects and mitigates money mule risks

At Flash Payments, fraud prevention is a company-wide imperative, not a siloed effort. Our recent training on "Combating the Exploitation of International Students as Money Mules" equipped every team member with the tools to spot and stop these schemes early. We know the red flags intimately:

• Financial indicators like rapid, high-value transfers from new accounts with minimal history.
• Personal signs, such as recruitment via unsolicited job offers or the use of proxy addresses.
• Behavioural patterns like inconsistent transaction purposes or links to high-risk geographies.

Our detection process is swift and layered. We leverage AUSTRAC-compliant KYC protocols and real-time monitoring, cross-referencing account activity against global watchlists and anomaly thresholds. If a suspicious pattern emerges, we isolate the account within minutes, notify the user, and escalate it to our compliance team. Funds are then held pending verification, and we collaborate with AUSTRAC and the AFP to report and freeze assets. In 2024-2025 alone, our proactive interventions stopped significant potential laundered funds, many tied to student mules.

Our vigilance stems from our regulatory foundation, ensuring every transaction aligns with Australia's AML/CTF framework. But detection is just the start; education empowers prevention. By sharing this knowledge, we aim to protect not just our clients but the broader community, including the international students who enrich Australia.

Fighting the future of fraud: How AI is revolutionising transaction monitoring

As money mule tactics evolve, so do our defences. At Flash Payments, we are harnessing AI to stay ahead, transforming transaction monitoring from reactive to predictive. Machine learning algorithms analyse vast datasets in real-time, flagging subtle anomalies such as unusual transfer velocities or pattern mismatches that humans might miss. Integrated with our platform, AI enables proactive risk scoring, significantly contributing to a reduction in false positives and accelerating resolutions. Our advanced AI capabilities have led to an overall reduction in false positives of more than 70%. This is the future of fraud fighting, where AI acts as an invisible guardian, safeguarding payments while empowering businesses to focus on growth. By blending human expertise with cutting-edge tech, we're not just combating today's threats—we're outpacing tomorrow's.

In an era where vulnerability meets opportunity, awareness is the strongest shield. If you're navigating Australia's financial landscape, stay vigilant: Verify job offers, monitor account activity, and report suspicions to AUSTRAC or the AFP. At Flash Payments, we're committed to a safer ecosystem. Together, we can end the money mule cycle and build a fraud-resilient future.