Synectics research: mule-linked activity surges by 63% in savings accounts

Savings accounts have seen a huge surge in mule-linked activity, according to brand new research from risk intelligence leaders, Synectics. Additionally, almost two thirds more laundering-related fraud reported in 2024. Reports of savings accounts being ‘used to receive fraudulent or disputed funds’ increased by 63% last year, compared to a 12% increase in current accounts. Overall, fraud filings for this reason are up 17%.

Taken from the ‘State of Fraud 2025: Banks and Building Societies’ report, the statistics are based on analysis of National SIRA. Owned and operated by Synectics, National SIRA is the UK’s largest source of evolving risk intelligence. It’s a vast pool of collated risk and fraud intelligence, sourced from the UK’s largest membership of over 150 organisations including Tier 1, mid-size, and challenger banks and building leading societies.

While current accounts still see the biggest volume of such activity, the savings account data suggests that money launderers and their mules are attempting to disperse activity across a wider range of financial products as part of their networks.

According to the report, ‘Misuse of facility’ (which aggregates all laundering-related reasons for filing) remains the dominant fraud typology by volume in the UK today. Closely followed by ID fraud.

Mule behaviours manoeuvre in line with banking trends

Synectics' data indicates that fraudsters are increasingly bypassing onboarding processes, but also that they are adapting their modus operandi.

Liese Rushton, Fraud Strategy Consultant at Synectics, said: “Post-Mandatory Reimbursement, mules and their herders faced a tactical tipping point. Knowing that account providers would likely scrutinise more transactions across more products (with many using predictive AI for mules), launderers are dispersing their targets. “It’s clear that long term customer monitoring leveraging real time intelligence is needed to detect the moment ‘good customers’ turn bad.”

 

The impact of AI emerges in ID fraud filings

The report also takes a closer look at the impact of identity fraud on the industry, including the most common manifestations.

According to the latest data, ID fraud is the main ‘growth fraud typology’ in the UK at this time. Reasons for fraud filings linked to this category include addresses not matching with provided identities, multiple applications using the same address, and the use of false identities – including suspected and confirmed cases of artificially created ‘synthetic IDs’.

Chris Lewis, Head of Solutions at Synectics, said: “There’s been a 25% increase in ‘false identity’ reports, this growth almost certainly linked to increased adoption of AI tools by fraudsters – tools which make light work of creating synthetic identities and manipulating genuine ones. We predicted the rise of synthetic IDs in 2023 and see their use in full force today”.

While the increase in reported ID fraud may be alarming, it is also indicative that evolving fraud detection tactics are working. Chris added: “Encouragingly, banks and building societies are intercepting more identity fraud. However, as image and video manipulation advance, fraudsters will keep investing in these tactics. Organisations must stay vigilant, adopting ID verification that moves from 2+2 checks to using diverse digital evidence to confirm someone is and lives where claimed.”

Clear cost-of-living symptoms 

Credit card fraud, application fraud, and mortgage fraud are also examined in the report – with data across all three indicating the that cost-of-living crisis remains a critical factor in UK fraud rates.

More frequent changes of address and conflicting employment details are just some of the areas discussed, the latter increasing by 7.3% in cases of reported application fraud.

As Synectics Fraud Strategy Consultant Jordan Roberts points out, “pressures connected to the cost-of-living crisis may potentially influence an individual’s decisions regarding fraud and financial risk taking”, and this seems evident in the latest data.

 

About Synectics

Synectics offers technology solutions that provide dynamic financial crime and fraud prevention professionals with the most accurate view of current and future risk.

Our risk screening and automated decisioning tools are underpinned by the largest single source of constantly updated risk intelligence of its kind. A vast pool of collated data, shared by the UK’s largest such membership of over 150+ organisations.

Each member shares their intelligence. We aggregate it and share real-time insight to detect and predict risk. Tier 1 banks, high-street insurers, leading fintechs and the UK Government are all using Synectics’ technology right now to cut fraud losses and fast-track legitimate customers.