STRUGGLING families are ‘unknowingly’ being made to launder money in return for the promise of cash from loan sharks.

Police are warning families not to fall victim to the conmen who are currently cold calling residents in East Lancashire.

The conmen are offering quick loans on the basis that the customer will have to pay a small advanced arrangement fee in order to receive the lump sum of money.

On a number of occasions, residents have found that once they have paid the fee the loan fails to materialise, leaving them out of pocket.

The fraudsters, who are usually operating from outside the country, are also approaching other residents to become ‘money mules.’ Residents are being offered cash in order to accept the advanced fee, conned from someone else in the county, into their UK bank account before transferring it out to the conman’s foreign account.

This seemingly legal transaction is in fact money laundering.

DC Tony McClements, of Lancashire Constabulary’s economic crime unit said: “During times of austerity and the stricter lending regimes being operated by the banks, borrowing money can be difficult.

“These fraudsters play on the victim’s need to improve their cash-flow and offer ‘guaranteed’ loans in return for an arrangement fee.

“The victim pays the fee as requested and ultimately never receives their loan as it simply did not exist.

“To compound matters the victims are paying their fees into the accounts of UK nationals who act as intermediaries; and who may or may not be aware that they are committing an offence of money laundering for which they can be imprisoned for up to 14 years.”

Residents are advised to steer clear of all lenders who offer small rewards for accepting funds into their accounts.

For more information or advice visit www.actionfraud.police.uk