Money Mule Accounts: 238,396 Closed by UK Banks in 2025
UK banks and apps closed 238,396 suspected money mule accounts in 2025, up from 184,935 in 2023. Plus the crypto licence window and the Monzo takeover talk.
Four things this week touch the apps you bank, borrow and trade crypto with. The regulator published how many accounts are being shut for money muling, crypto firms can now apply for UK authorisation, credit card borrowing jumped again, and a report that Monzo was in takeover talks was denied within hours. Only one of them asks you to do anything, and it is the first.
Banks and apps closed 238,396 suspected money mule accounts in 2025
The Financial Conduct Authority published a survey of 35 retail banks, building societies, challenger banks, payment institutions and e-money firms on 23 September. They closed the accounts of 238,396 suspected money mules in 2025, up from 233,269 in 2024 and 184,935 in 2023. The FCA says some of that rise may reflect customer growth and better detection rather than more mules.
The age split is the part to read. Closures were highest among 26 to 39 year olds at 91,073, customers aged 25 and under accounted for 85,425, and the sharpest rise was among 40 to 49 year olds, up from 25,760 in 2024 to 37,274. Criminals typically pushed stolen money through two to five accounts before cashing out, most often by card, in lots of small payments that look like normal spending.
The practical risk is not only prosecution. Letting someone route money through your account usually ends with the account closed and a fraud marker that can make opening a new one, at any bank or app, difficult for years. The approach is usually a “job” offer or quick cash out of the blue, often online. No legitimate employer needs your account to move its money. If a teenager in your house has their own card, this is worth a conversation, and money apps for teenagers covers which accounts give parents visibility. The scam playbook more broadly is in fake banking app scams. Source: FCA.
Crypto firms can now apply to be FCA authorised, with a 28 February 2027 deadline
From 30 September, crypto firms can apply to the FCA for authorisation under the UK’s new regime, which covers consumer protection, safeguarding of customer assets, market integrity and financial resilience. Firms that want to keep operating in the UK should apply by 28 February 2027, and the regime comes into force on 25 October 2027. Authorisation is not automatic: firms that cannot show they meet the standards will not be allowed to carry on offering regulated crypto services here.
For anyone holding crypto in an app, nothing changes yet. Until the regime starts, the protections it promises do not apply, and existing firms that apply on time can keep trading while their application is assessed. Crypto held in an app is also not covered by the FSCS. The useful thing to do next year is check whether your app was authorised once decisions are made, rather than assuming it was. Is my money safe in an investing app covers what protections apply to which assets. Source: FCA.
Credit card borrowing rose £1.2bn in August, at an average 21.55%
The Bank of England’s Money and Credit figures, published on 29 September, show net credit card borrowing of £1.2 billion in August, up from £0.9 billion in July. Annual growth in credit card borrowing reached 13.3 per cent, from 12.6 per cent. The effective interest rate on interest-charging cards rose to 21.55 per cent, new personal loans averaged 9.96 per cent, and interest-charging overdrafts fell 33 basis points to 20.27 per cent.
The gap between those rates is the point. A balance carried on a card costs more than twice what a personal loan does on these averages, so if card debt is growing, moving it to a cheaper form of borrowing or a 0 per cent balance transfer is usually the first saving available. Credit score apps can show your eligibility for those offers before you apply, which avoids a string of hard searches; see best credit score apps and paying off debt with money apps. Source: Bank of England.
Nubank denied it is pursuing a $10bn Monzo takeover
Sky News reported that Monzo was in early discussions about a $10 billion tie-up with Nu Holdings, the New York-listed parent of Brazil’s Nubank, and was also talking to private equity firms including Advent International about selling a significant minority stake. On 1 October Nubank said that “while we have a great deal of respect for Monzo, the Company is not pursuing a transaction with Monzo”.
If you bank with Monzo, there is nothing to do. A change of owner does not change your account terms on its own, and your deposits stay protected by the FSCS up to £120,000 because Monzo holds a UK banking licence. If an app ever does change hands or close, what happens when a money app shuts down covers the sequence, and our Monzo review covers the account itself. Source: Finextra.
