Money Mules

/

Have you heard of the term, money mules? Are you aware of the dangers and risks associated with being a money mule?

 

This is a very concerning trend in the financial markets today. It’s important to be aware of this trend so that you can protect yourself, your loved ones, and your friends.

 

A money mule is an individual that transfers money on behalf of another. They are requested by suspected criminals to launder money made through illegal activities.

 

Money mules are promised easy money for their participation in moving funds. Here are a few of the ways money mules are asked to move money:

 

  • Cryptocurrency

  • Cash

  • Bank transfers (wire, ACH, EFT)

  • Money service businesses

  • Prepaid cards, gift cards

 

How are money mules recruited? Unfortunately, it’s rather easy to get recruited to be a money mule. Here are a few ways that this can happen:

 

  • Through unsolicited emails or other types of communication. The suspected criminal will email you and request that you open a bank account. They may also request that you open a cryptocurrency wallet, or even open a new business in your name.

  • Romance/confidence scams. Beware of a romantic partner that asks you to handle money for them.

  • Employment scams offering easy money

  • Non-payment/non-delivery scams

  • Lottery scams where personal information is collected.

 

Who is at risk? Anyone can be recruited to be a money mule. Targeted individuals are often the elderly, college students, and recent immigrants. No special skills are required. The money mule will receive specific instructions from the suspected criminal.

 

Who investigates these types of crimes? The FBI investigates money handling crimes. There has been a steady increase in this type of illegal activity since 2020. It’s thought that the COVID 19 quarantine restrictions played a part in the rise. More people were out of work and looking for quick income.

 

Money mules are instructed to provide their personal information to the suspected criminal. This information will be used to open fraudulent accounts. These accounts are then used to support fraudulent activities in the future.

 

The consequences of being a money mule are significant. They can have their identity stolen and open themselves to personal liability. They can have their credit scores negatively affected. And it can limit their ability to open bank accounts or secure lines of credit in the future. The families of money mules are also at risk. The suspected criminal may threaten the safety of those families. This may occur if the money mules try to stop working for the suspected criminal.

 

It’s also important to note that money mules can face serious consequences if caught. They may serve time in prison, fines, or be required to do community service. Here’s a list of the federal charges that can be filed against a money mule:

 

  • Mail fraud

  • Wire fraud

  • Bank fraud

  • Money laundering

  • Transactional money laundering

  • Prohibition of unlicensed money transaction business

  •  Aggravated money theft

 

How can you protect yourself or your loved ones? Remember this. If it sounds too good to be true, walk away!

 

Here are a few other tips to consider:

 

  • Do not accept job offers that ask you to receive company funds to your bank account

  • Be suspicious of a romantic partner that asks you to receive or transfer funds to your account

  • Do not provide your financial details to anyone. This includes bank account information, logins, and passwords.

  • Do not provide copies of your identification documents to anyone. This includes your driver’s license or social security number.

  • Reach out to your bank if you have any questions about your accounts. If something doesn't look right, look into it.

  • Contact your attorney if you have any other questions.

 

If you suspect that you are being targeted as a money mule, do the following:

 

  • Stop communicating with the suspected criminal

  • Stop transferring funds or items of value

  • Keep all communication documents and receipts for law enforcement

  • Notify your bank or financial institution of the suspected activity

  • Notify law enforcement

 

Always be cautious with money matters. It’s rather easy to get caught in fraudulent activity if you are not paying attention. A suspected criminal can prey on your good nature and take advantage of you. Stay smart. Stay safe. 

 

Don’t hesitate to Prairie Land Title if you have any questions about this or any other topic. If we are not the right source to answer your question, we will connect you with someone who can help. We are here to serve you. Providing vital information is a key part of the service we are here to provide.