The FBI defines a money mule as someone who transfers or moves illegally acquired money on behalf of someone else. These types of scams happen several ways, often involving online dating, work at home jobs, or prizes. A scammer sends money to you, sometimes by check, then asks you to send some of it either back to them or to someone else. Sometimes they want you to send gift cards, wire transfers, or money orders. Of course, what they don’t tell you is that the money is stolen, and they are lying about the reason to send it. There never was a relationship, job, or a prize, only a scam. If someone deposits a scammer’s check it could clear initially but later turn out to be a fake check. If the check is fake, it will be charged back to the customer’s account, and they will be held liable for the money. That could potentially lead to the customer becoming overdrawn and not having the money to make their account positive. If a customer is overdrawn and can’t pay it back, the account gets charged off and sent to collections, which goes against the customer’s credit. There could also be legal ramifications for helping a scammer move money whether you know it is a scam or not. Here is what the FBI and FTC has to say about Money Mules.
Types of Money Mules
Unwitting or unknowing money mules are unaware they are part of a larger scheme.
- Often solicited via an online romance scheme or job offer
- Asked to use their established personal bank account or open a new account in their true name to receive money from someone they have never met in person
- May be told to keep a portion of the money they transferred
- Motivated by trust in the actual existence of their romance or job position
Witting money mules ignore obvious red flags or act willfully blind to their money movement activity.
- May have been warned by bank employees they were involved with fraudulent activity
- Open accounts with multiple banks in their true name
- May have been unwitting at first but continue communication and participation
- Motivated by financial gain or an unwillingness to acknowledge their role
Complicit money mules are aware of their role and actively participate.
- Serially open bank accounts to receive money from a variety of individuals/businesses for criminal reasons
- Advertise their services as a money mule, to include what actions they offer and at what prices. This may also include a review and/or rating by other criminal actors on the money mule’s speed and reliability.
- Travel, as directed, to different countries to open financial accounts or register companies
- Operate funnel accounts to receive fraud proceeds from multiple lower-level money mules
- Recruit other money mules
- Motivated by financial gain or loyalty to a known criminal group
Signs of a Money Mule Scam
Work-from-Home Job Opportunities
- You received an unsolicited email or social media message that promises easy money for little or no effort.
- The “employer” you communicate with uses web-based email services (such as Gmail, Yahoo, Hotmail, Outlook, etc.).
- You are asked to open a bank account in your own name or in the name of a company you form to receive and transfer money.
- As an employee, you are asked to receive funds in your bank account and then “process” or “transfer” funds via: wire transfer, ACH, mail, or money service business (such as Western Union or MoneyGram).
- You are allowed to keep a portion of the money you transfer.
- Your duties have no specific job description.
Dating and Social Media Sites
- An online contact or companion, whom you have never met in person, asks you to receive money and then forward these funds to one or more individuals you do not know.
Cryptocurrency Kiosks
- You are directed to deposit cash into one or more cryptocurrency kiosks.
Protect yourself! Be wary if someone asks you to open a new bank account or transfer money for them. Don’t accept a job offer that asks you to use your own bank account to transfer money, legitimate companies will not ask you to do this. Do your own research into work from home jobs to check that they are legit. Be suspicious if you meet someone on an online dating site and they want to send you money to forward to someone else. Never, ever give out banking or financial details to someone you don’t know! Whether you are complicit or not, if you are caught being used as a money mule you could be arrested and do jail time as part of a criminal money laundering conspiracy. Being a money mule can damage your credit, reputation, and your own personal information. You could also be held personally liable for repaying money you helped other victims lose. Criminals are good at making up reasons for you to help them move their money. By participating in a Money Mule scam, you will be helping criminals hurt other people just like you.
