Money Mules

What is a money mule?

A money mule is an individual who is recruited by criminals or fraudsters to help move money obtained through illegal activities. These illegal activities often involve financial scams, such as phishing, identity theft, romance scams, or online fraud. The money mule’s role is to receive the funds into their account, sometimes in the form of an external transfer, wire, or counterfeit check deposits. Then, they will be asked to transfer the money to another account, often overseas. Mules may also be instructed to withdraw cash and purchase cryptocurrency.

What is an unwitting money mule?

Money mules are often unaware that they are participating in criminal activities. They may be lured in with promises of easy money or job opportunities. Sometimes they’re told that they are helping with legitimate business transactions. However, their actions are integral to the criminal operation, as they help to hide the trail of the illicit funds, making it harder for law enforcement to track and trace the money’s origin.

Participating in money mule activities is illegal, even if the individual is unaware of the criminal nature. In many cases, money mules can face serious legal consequences, including being charged with money laundering and fraud. It is important to be cautious and skeptical of any offers that involve receiving and forwarding funds for a third party or an unknown source. Becoming a mule – even unwittingly – can lead to legal troubles and financial loss.

How money mules are recruited?

As technology evolves, money mule scams take on a growing variety of forms. Criminals may try to recruit you in any of the following ways:

• Emails
• Social media messages
• Fraudulent job advertisements
• Online posts
• Instant messaging
• Other direct communication

Good to know

Money mules are often unaware that they are participating in criminal activities. They may be lured in with promises of easy money or job opportunities.

How to recognize a money mule scam

Criminals go to great lengths to pass as legitimate, sometimes even copying the website of real companies and creating similar website addresses (URLs). Be on the lookout for these warning signs:

• The job claims you can earn a significant amount of money with little effort.
• No matter what the specifics are, you’re asked to supply your bank account information.N
• You are asked to work as a local representative for an overseas company. They may ask for an “agent” to help them avoid transaction charges or local taxes.
• The job description lacks specific details.
• No particular experience or education is required.
• All the work is done online.
• Emails have awkward writing with poorly constructed sentences and bad grammar.
• Email is from a web-based server like Gmail, Yahoo!, or Windows Live Hotmail.

I think I’ve been used as a money mule

If you believe that you are currently being used or have been used as a money mule before, there are steps to take.

If you’re currently involved in what you suspect is a money mule scam, you should stop interacting with the scammers. If you have already transferred money somewhere, you should contact the financial institution that was used for the transaction.

You should also file a report with the following:

• Your financial institution, like your bank or credit union
• Federal Trade Commission
• Local law enforcement
• National Elder Fraud Hotline, if the victim was an elder

It may seem like overkill to file multiple reports, but agencies often work independently of each other. You may also want to consider filing a credit freeze, which will ensure that no one can open a credit account in your name.