Money mules are individuals who are hired to receive and forward funds through their personal or business bank accounts. According to the Federal Bureau of Investigation (FBI), “Money mules help criminals launder their proceeds derived from criminal activities, by adding layers of recipients to the money trail.” This makes it more difficult for law enforcement to trace the trail of money from a specific victim to a criminal actor.
It may begin with a seemingly innocent request from someone the victim met through an online dating site or in response to a job posting. They are asked to provide their banking information and let money flow through their account to others. They may believe they are doing it as a favor to a new romantic partner or to earn some money. However, much of the money moved through these schemes is stolen through Internet fraud or comes from drug trafficking or human trafficking. Whether or not the mule is aware they are engaged in criminal activity, they are breaking the law.
Although some mules know that they are engaging in illicit behavior, many of them (at least initially) believe they are simply helping an individual or a business and do not realize they are involved in money laundering. Mules who are unaware of what they are doing may be able to avoid prosecution, but even if they are not prosecuted money mules are putting themselves at risk for identity theft, personal liability, negative impacts on their credit scores and the inability to open bank accounts in the future. They and their families could also be threatened by the criminals if they refuse to continue working as mules.
These schemes use a variety of methods to transfer funds. Mules may be instructed to wire money, obtain cashier’s checks or purchase gift cards with the illicit funds. KrebsonSecurity reports that some mules are now using Bitcoin ATMs to convert cash to cybercurrency and forward it to the criminals.
The FBI suggests several ways to avoid becoming a money mule:
- Do not accept a job offer requiring you to use your bank account to transfer money for the company.
- Be suspicious of an employer who asks you to form a company and open a bank account.
- Never give your financial details to anyone you do not personally know and trust.
- Watch out for job advertisements riddled with spelling and grammar errors.
- Be wary when a person you met on a dating website wants to use your bank account to send or receive funds.
- Do online searches to verify any information that seems questionable.
- Ask potential employers to send a copy of their business license.
