What is a money mule scam? 

A money mule scam is when a crimnal uses another person's bank account to transfer and launder illegally acquired money. Criminals may try to trick you into moving stolen money by posing as employers, online love interests, or investment opportunities. They often recruit through online job ads, social media, enticing — though fake — investment opportunities, prize offers or dating websites. If someone sends you money and asks you to send it to someone else, STOP., This could make you an unwitting accomplice to fraud.

 

How to avoid becoming a money mule

To avoid becoming a victim of a money mule scam, the U.S. Postal Inspection Service and ABA Foundation recommend that consumers: 

  • Do not use your own bank account, or open one in your name, to receive or transfer money for an employer or anyone else.
  • Do not accept or endorse a check that is not in your name, even if a friend or employer asks you to do it.
  • Do not incorporate a fictitious business to deposit a check corresponding to a similarly named business.
  • Never pay to collect a prize or transfer money from your prize “winnings.”
  • Never send money to online love interests, even if they appear to send you money first.
  • Do not listen to anyone offering you a great cryptocurrency investment or asking you to deposit money into a Bitcoin ATM.
  • Never purchase cryptocurrency or gift cards on behalf of, or for, someone you met online or over the phone.
  • Never share your bank passcodes, including one-time verification codes, or provide anyone with access to your bank account, online credentials, debit card number or PIN.
  • Always monitor your accounts and report suspicious activity to your bank.

 

Consequences of being a money mule

Acting as a money mule is illegal and punishable, even if you aren’t aware you’re committing a crime.

There are three types of money mules. People who are:

  1. UNWITTING — unaware that they are part of a larger scheme.
  2. WITTING — willfully ignore obvious red flags.
  3. COMPLICIT — are aware of their role and actively participate in criminal activity.

According to the FBI, if you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Some of the federal charges you could face include mail fraud, wire fraud, bank fraud, money laundering, and aggravated identity theft. 

If you spot a scam: 

  • Stop all contact and refuse to move money.
  • Report it to your bank and any involved financial services.
  • Notify the FBI (IC3.gov) and U.S. Postal Inspection Service (uspis.gov/report).

Fraudsters are skilled at deception — don’t let them use you. Protect yourself by learning how to detect and avoid falling victim to a money mule scam.

 

2024-ABA-Money-Mule-Infographic

 

Sources:

American Bankers Association, https://www.aba.com/news-research/analysis-guides/money-mules-protect-yourself

FBI, https://www.fbi.gov/how-we-can-help-you/scams-and-safety/common-frauds-and-scams/money-mules