Parents urged to warn teens of legal risks from mule accounts

PENAMPANG, Aug 29 — Parents should take active steps to educate and caution their children, particularly teenagers, against becoming involved in mule accounts, which can result in serious legal action, according to the Ombudsman for Financial Services (Ewon).

Mule accounts refer to bank accounts or digital wallets that are used to receive and transfer illicit funds on behalf of criminal syndicates. Teenagers are often targeted by these criminal networks due to their lack of awareness about the legal implications and their relative ease of manipulation.

Ewon emphasised that individuals who allow their bank accounts or financial services to be used for such purposes could face criminal charges, regardless of whether they were knowingly complicit or had been deceived into participation. The regulatory body highlighted that penalties can include imprisonment and substantial fines.

The advisory comes as financial fraud and money laundering schemes continue to evolve across the region. Parents are urged to have frank conversations with their children about the risks of sharing personal financial information or allowing others to use their accounts, even if promised quick money or incentives.

Ewon recommended that teenagers be reminded to immediately report any suspicious requests involving their financial accounts to their parents and the relevant authorities. The organisation also urged financial institutions to strengthen their verification processes to prevent the misuse of accounts by criminal elements.