Money mule awareness

Increasingly, fraud networks are recruiting unsuspecting victims to receive and transfer money from other victims.

What is a money mule?

A money mule is person who's recruited by fraudsters to serve as a middle person to transfer stolen money. This is known as money laundering, which is a crime. They may or may not know that they're a pawn in a larger network. When a mule moves money, it becomes harder to identify the fraudsters from the victims.

They often transfer the money using:

• bank wire transfers
• email money transfers
• money services, businesses and virtual currencies

Typically, mules receive a small percentage of the money transferred.

Warning signs and how to protect yourself

Fraudsters use several methods to recruit potential money mules. Here are a few warning signs to watch for:

• If you receive funds for any reason from an unknown person or company, and they ask you to forward it elsewhere, don't
• Be aware of offers for employment from what appears to be a legitimate employer looking for a "Financial Officer"
  • The duties usually involve:
    • collecting payments for the new employer
    • accepting funds into your personal bank account
    • forwarding the money to a different country
• Victims of romance scams have been used as money mules as their "loved one" is working in a foreign country and needs help to collect funds
• Consumers that have won a fake lottery receive advance payments on their winnings
  • They are then asked to forward it to a "financial office" to cover fees or taxes
• You should question any request to conduct unusual or questionable transactions on behalf of a third party

Date modified:

2021-08-12