The Analysis News & Opinions
‘IT more vital by the day in collections’
Opinion
Research reveals rise in middle-aged money mules
Our research has revealed a rise in those over the age over 40 acting as ‘money mules’. Money muling occurs when an individual
receives money into their bank account and transfers it elsewhere, often with the promise that that they can keep a portion of the cash for themselves. This kind of criminal activity could result in the complicit person’s bank account being closed, as well as difficulty obtaining financial products including loans and mortgages. In some cases it may even result in a prison sentence. Our research shows a 25% increase in
The best technology is becoming ever more essential in the collections industry, according to a senior groups of professionals. Speaking at a round-table debate run by
CCRMagazine, in association with The Zinc Group, Dan Smith, senior digital strategy manager at NewDay said: “Technology and insight is getting ever more important by the day. We have found the channel, which you used to acquire the product, will tend to be the one you stay in. If you start developing these things when they are wanted, you have started too late. If we take something like web-chat, people were not using it two years ago in collections, we have put it in recently and it has gone off the charts, with people wanting to use it. The same goes for digital, and, of course, that is important at the online lenders, but, if you have people apply through online channels, then they do not want to speak over the telephone, and vice versa, if you have applied via the telephone, then you probably do not want to use an online channel.” Craig Proctor, group commercial director
for The Zinc Group, said: “We have definitely seen an extra layer of engagement because of new technology. Collections is all about engagement, you have to get the person to come back to you, and technology has helped because people come back at a time and in a way they want. If they are using a particular channel and do so repeatedly, and you ask if they want to be contacted in that way in the future, then you have a better chance with those people, rather than trying to force them.”
November 2019 Richard Fenton, head of corporate
development at The Zinc Group, agreed: “It is about unlocking some more doors for the customer to knock on. Traditionally, the industry has been the driver of going out to talk to customer, but today the points on anonymity and the choice of channels are key. “Because, we have found that, if you
present the customer with five different options by which they can contact you – one voice and four alternatives – then the customer can then make that choice. We find that customers graduate, so customers, who we would not normally be speaking to, will select the digital channel to test the water, proverbially; I liken it to giving customers the keys to our business and inviting them to come in and have a look what we do and who our agents are. “They can do that through the digital
channel and then when they are comfortable with the business, they will pick up the telephone as it can speed things along, just to finish off the proposal or the conversation.” Meanwhile, Nicky Sullivan, servicing
director for Kensington Mortgages, said: “As we are more at the start of our technology transformation, our strategy is very much a case of empowering agents to have the right conversations and engage with the customer. It is not necessarily a question of replacing agents, rather of making sure that they are having beneficial, meaningful conversations, instead of unnecessary ones or carrying out admin tasks that could be automated.”
www.CCRMagazine.com
money muling activity in those aged 41 to 50 over the nine months up until September, and a 26% rise among those aged 51 to 60. Much work has been done recently by
banks and the wider anti-fraud community to raise awareness of the consequences of money muling amongst young people, which may be leading fraudsters to turning their sights towards older victims. Younger people are still responsible for
the largest proportion of money-mule activity, with those under 40 contributing 83% of the total number of incidents reported. But the research reveals that the rate of growth is stalling among these age groups – decreasing by 6% for those under the age of 21. Despite this, the fight is far from over – as
BBC Money Box recently found while carrying out an undercover investigation. A reporter found several attempts to manipulate people into committing financial fraud, including a 16 year old who offered the reporter £400 to cash out a deposit to their bank account. In another case, a teenager asked the
reporter to cash £30,000 worth of cheques in exchange for a share of the funds. In a third case, an international university student told the reporter of a man posing as a student who claimed to be part of a money muling gang targeting university students as they were less likely to generate suspicion.
Mike Haley Chief executive, Cifas
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