Thousands of young people exploited to launder money – report

Thousands of young people are being exploited by criminals to launder money, The Children’s Society is warning.

Figures obtained by the charity from UK fraud prevention service Cifas indicate that 6,434 under-21s were identified last year where there were grounds to believe that frauds or financial crimes had been attempted through them.

The charity said its own research indicates some children aged 15 to 17 have experienced severe violence as a direct result of financial exploitation.

Victims are manipulated through coercive tactics such as threats against their families, financially motivated sexual extortion or “sextortion” and fears of criminal prosecution, the charity said.

It warned that exploitation often starts with seemingly minor requests such as sharing bank details or responding to “quick cash” job adverts.

The society said young people report regularly seeing scam posts across social media platforms.

It said scam social media posts which portray a particular lifestyle, such as those with fast cars or expensive jewellery, may be appealing to young people.

The research highlighted that both poverty and wealth can place children at risk. Children from affluent backgrounds may be vulnerable to criminals who exploit their access to credit, financial products, or accounts that easily mask illicit activities.

Victims frequently face frozen bank accounts, leaving their families without access to essential financial services needed for basics such as food and energy bills, the charity warned.

Young people who spoke to The Children’s Society reported that focus on potential penalties for fraudulent activity rather than providing clear avenues for help, discourages victims from seeking assistance.

Get a free fractional share worth up to £100.
Capital at risk.

Terms and conditions apply.

Go to website

ADVERTISEMENT

The report was based on consultations with more than 100 children and professionals working in exploitation.

Mark Russell, chief executive at The Children’s Society said: “No child should suffer the trauma of financial exploitation. It profoundly impacts childhoods, causing damage that extends into adulthood.”

The charity said key actions to tackle the problem should include comprehensive education for children about healthy relationships including grooming and exploitation, specialist financial exploitation training for professionals such as teachers, police, social workers, and financial sector employees and tackling underlying risk factors such as poverty and school exclusions.

Fraud minister Lord Hanson said: “It is absolutely disgraceful that criminal gangs are exploiting teenagers in this way, and we will not stand for it.

“Innocent youngsters are being forced by the gangs to hold and transfer illicit funds.

“If they try to say no, they face horrendous violence and intimidation; if they go along with it, they and their families can find themselves in deep financial trouble.

“We are determined to crack down on the financial exploitation of children and ensure that those youngsters who come forward to report what has happened to them are treated as victims not criminals.

“We applaud the work that the Home Office-funded prevention programme, delivered by The Children’s Society, are doing in this area, and we are proud to fund a specialist financial exploitation officer as part of that work.”

Mike Haley, chief executive of Cifas, said: “The scale of harm caused by the financial exploitation of young people is deeply concerning.

“At Cifas, we’re committed to ensuring our solutions and systems protect – not criminalise – vulnerable children.

“That’s why we issued new guidance earlier this year to help our members make proportionate filings to the National Fraud Database.

“Tackling this issue demands a united front – industry, government, financial institutions and regulators must work together to stop fraudsters targeting young people and taking advantage of them both financially and emotionally.

“We’re proud to stand alongside The Children’s Society in strengthening this vital partnership.”