What Is A Money Mule And How They Help Scammers Launder Money

A money mule is a person who receives and transfers money from fraud victims. While some money mules are knowingly involved in illegal activities, scams, and frauds, others may not realise that they are helping fraudsters.

In many cases, money mules are innocent people who get tricked into the scheme through different methods like job offers, online ads, or social media messages. They might be tempted with fast money or a chance to work from home, but actually, they’re being used to launder money.

Money mules are directed to deposit money into their bank accounts, then transfer it to another account or take out cash. They’re given a portion of the money as payment. The fraudsters use different strategies to avoid detection like using multiple bank accounts or false identities.

The FBI, the United States federal investigation agency, has explained how people become money mules and who is at risk of being involved in this practice.

Who are the Most Targeted?

Criminals often target students, job seekers, or individuals using dating websites, but anyone can be approached to participate in money-making schemes. Europol stated that organised crime groups and recruiters of money mules have started to focus on younger generations, particularly those aged between 12 and 21, usually below the 35 years age group. Even if authorities remove these posts, crooks can easily repost false advertisements.

How To Recognise?

To avoid being a money mule, it’s important to spot signs of someone trying to recruit you for this illegal activity. The FBI lists several ways you might get trapped in it.

You received a message promising to help you make money easily.

The person uses email services like Gmail, Yahoo, Hotmail, or Outlook.

They want you to open a bank account in your name or in a company name you made.

Your job is to get money in your bank account and then send it somewhere else.

The money is transferred using ACH, mail, or services like Western Union or MoneyGram.

You get to keep some of the money you transferred.