Fake Police Scams, Money Mules and Bank Account Charges

Written by Justin Chua, Principal Solicitor, Chua Tan Associates. Last reviewed 17 October 2026. General information about Victorian law, not legal advice.

This page is for international students and others in Melbourne who have been contacted by people claiming to be police or officials, and for anyone whose bank account has been used to receive or send money for someone else. The two situations often overlap: a person who was scammed can later be asked by police to explain money that moved through their account. Get advice before you explain anything to police or your bank.

How fake police and “virtual kidnapping” scams work

Warnings from Victoria Police, the Australian Federal Police (AFP), Scamwatch and Study Melbourne describe a similar pattern. A caller, often speaking Mandarin, says they are from a courier company, a phone company, a bank, the police or another authority in China or Australia. You are told that a parcel in your name contained fake passports or documents, or that your identity has been linked to a serious crime. You are then threatened with arrest, extradition or deportation unless you pay money to “prove your innocence”.

• Threats and urgency. Scamwatch says that if someone calls you making threats about arrest or deportation, it is a scam.
• Secrecy and isolation. You are moved to WeChat, WhatsApp or another encrypted app, told not to tell anyone, and pushed to cut off friends and family.
• Fake proof. Scammers use fake websites, arrest warrants and video calls with someone in uniform. Caller ID can be faked to show an official number.
• Staged kidnapping. Victims are told to move into a hotel and send photos or video of themselves tied up or blindfolded. Those images are then used to demand a ransom from family overseas.

Victoria Police says losses often build over weeks or months, and that some victims have been directed to intimidate other victims or sent to other Asian countries. NSW Police issued similar warnings about virtual kidnappings of international students in 2023.

What to do if you receive one of these calls

• Hang up. Do not call back on a number the caller gives you; find the official number yourself.
• Never send money to anyone claiming to be Chinese police or government officials. Victoria Police gives this advice directly.
• Call 000 if you feel unsafe. Report to Victoria Police on 131 444, Crime Stoppers on 1800 333 000, ReportCyber or Scamwatch.
• Contact your bank immediately if you have shared account details, and IDCARE (1800 595 160) if your identity may be compromised.
• You can also contact your consulate and your university’s student support service.
• Family overseas who receive kidnapping photos or ransom demands should try to reach the student through friends, the university or police in Australia before paying anyone.

When your bank account is used to move money

In February 2024 the AFP warned that criminals recruit university students through job ads offering quick money for moving funds through their bank accounts, that people can be charged even if they did not realise what they were doing, and that a criminal record may affect an international student’s ability to keep their visa. Situations that can lead to charges include:

• lending, renting or selling your bank account, card or online banking login;
• a “part-time job” that involves receiving transfers and sending them on, or buying cryptocurrency or gift cards for someone else;
• informal currency exchange for people you do not know; and
• being told by a fake official to transfer money through your account as part of an “investigation”.

The law

Dealing with proceeds of crime is defined broadly. It includes receiving, possessing, concealing or disposing of money, and under Commonwealth law also moving money into or out of Australia. Broadly, the prosecution must prove that you dealt with the money, that it was proceeds of crime (or, for some offences, reasonably suspected to be), and your state of mind.

Victoria: Crimes Act 1958

• Knowing it is proceeds of crime and intending to conceal that (s 194(1)): up to 20 years.
• Knowing it is proceeds of crime (s 194(2)): up to 15 years.
• Reckless as to whether it is proceeds of crime (s 194(3)): up to 10 years.
• Negligent as to whether it is proceeds of crime (s 194(4)): up to 5 years.
• Dealing with property reasonably suspected of being proceeds of crime (s 195): a summary offence, up to 2 years.

Commonwealth: Criminal Code Division 400

Commonwealth offences are graded by the value involved and your state of mind (intention, recklessness or negligence):

• $1,000,000 or more: up to 25, 12 or 5 years.
• $100,000 or more: up to 20, 10 or 4 years.
• $50,000 or more: up to 15, 7 or 3 years.
• $10,000 or more: up to 10, 5 or 2 years.
• $1,000 or more: up to 5 years, 2 years or 12 months.

There is also an offence of dealing with money reasonably suspected of being proceeds of crime (s 400.9). The prosecution does not have to prove which crime produced the money. Splitting cash deposits to avoid the bank’s $10,000 reporting threshold is a separate “structuring” offence, even if the money is legitimate. See Money Laundering & Proceeds of Crime.

Frozen funds and closed accounts

Banks report suspicious matters to AUSTRAC, and police may obtain bank records long before anyone is contacted. A bank may freeze or close an account under its own terms. Separately, police or Commonwealth authorities can apply for a restraining order over money or property under the Confiscation Act 1997 (Vic) or the Proceeds of Crime Act 2002 (Cth), and some forfeiture proceedings can continue without a conviction.

• Find out who has frozen the money: the bank on its own decision, or a court order.
• Do not move money between accounts or withdraw cash to get around a freeze.
• Do not send the bank a written explanation of where money came from until you have had advice.
• There are procedures to challenge restraining orders and to seek release of funds for living or legal expenses.

If you were scammed and money also went through your account

1. Stop. End all contact with the scammers and do not move any more money.
2. Report. Report the scam to police and tell your bank.
3. Keep everything. Save chats, call logs, screenshots, receipts and transfer records. Do not delete WeChat or WhatsApp history.
4. Get advice before a detailed account. Being a victim may be an important part of your explanation, but what you say to police can still be used as evidence. A lawyer can help you give a clear, documented account at the right time. See Police Interviews: Your Rights.
5. Tell your family. Let family overseas know what has happened so they do not pay anyone claiming to hold you.

Other consequences

• Visa. A conviction, and in some cases the conduct itself, can be considered under the character test (Migration Act 1958 (Cth) s 501) or as a ground for cancellation under s 116. See Criminal Charges for International Students.
• Banking. Account closures can make it harder to open accounts later.
• Employment and travel. The AFP notes that a criminal record can affect both.
• Confiscation. Money or property linked to the offence may be restrained or forfeited.

How we can help

• Advice before any police interview or bank enquiry, including whether and how to give an account.
• Helping victims report a scam while protecting their position on money that moved through their account.
• Building a documented account of where funds came from, including transfers from family overseas.
• Advice on frozen funds and restraining orders.
• Criminal and visa advice together. Justin Chua, our Principal Solicitor, advises in English and Mandarin. Our firm, Chua Tan Associates, has practised in Melbourne since 1990, includes two Law Institute of Victoria Accredited Specialists in Immigration Law, Kin Wee Chua and Chit Thian Chua, and works with lawyers overseas on cross-border matters.

For urgent matters, such as a police interview request in the next few days, see urgent help or book a priority consultation.

Chinese-language versions of this page: 简体中文 ｜ 繁體中文.

Frequently asked questions

Is a call from “Chinese police” demanding money real?

Treat it as a scam. Scamwatch says a call threatening arrest or deportation is a scam, and Victoria Police says never send money to anyone claiming to be Chinese police or officials. Hang up and report it.

I lent my bank card to someone. Is that illegal in Australia?

If money from crime passed through the account, you can be charged even if you did not know where it came from, because some offences require only negligence or reasonable suspicion. Stop the arrangement and get advice before speaking to the bank or police.

My bank account has been frozen. What should I do?

Find out whether the bank froze it or a court order is in place, do not try to move the money, and get advice before giving explanations. There are procedures to seek release of funds for living or legal expenses.

I was scammed and then told to transfer money for other people. Am I a victim or a suspect?

Police may look at both. Report the scam, keep every record, and get advice before giving a detailed account of the transfers.

Will this affect my student visa?

It can. The AFP has warned that money mule activity may affect a student’s ability to keep their visa. Criminal and visa advice should be considered together.

Penalties and procedures on this page reflect Victorian and Commonwealth law as at the review date shown above. Maximum penalties are rarely imposed; the sentence in any case depends on its own facts.