Money Muling: How to Spot and Avoid This Scam

A money mule is someone who transfers illegally acquired money for someone else.¹

With money mule scams, criminals recruit individuals to launder proceeds from online scams, frauds, or crimes. This makes it harder for law enforcement to trace the funds. Acting as a money mule carries a great level of risk and is both illegal and punishable.²

This article will explain what money muling is, how it works, and what you can do to avoid falling victim to it.

Money muling is a type of money laundering, which is where criminals attempt to hide where illegally obtained money originated from. Money mules are typically recruited to assist criminals with laundering money and may be promised easy money for their participation in moving funds.³

Individuals who end up acting as money mules put themselves at risk for personal liability, negative impact on their credit scores, and even identity theft.⁴ The entity “paying” them could gain access to personally identifiable information (PII) like Social Security numbers, driver’s license numbers, addresses, phone numbers, and bank account routing and account numbers.

Money mules can be volunteers or victims. Fraudsters may attract volunteers in a number of different ways.

Anyone can be targeted for money muling, but scammers may target people who visit dating sites, students looking to earn extra money, and individuals searching for employment.

Fraudulent job advertisements are sometimes used to draw people into a money mule scam. These enticing offers make it look easy to make money while exerting limited effort. Money mule scammers may also send fake “employment” offers via email as well.

Other times, scammers may target people on dating sites. In this case, an online contact that you’ve never met in person may ask you to receive and then forward funds to individuals that you don’t know.

Other times, individuals can become a money mule when someone steals their identity and bank account info with a phishing email or fake online form.

There are different levels of involvement in money muling:

• Unwitting: Unwitting money mules are unaware that what they are doing is part of a bigger criminal scheme. These individuals may be recruited via romance scams or employment scams.
  
  
• Witting: Witting money mules ignore signs of criminal activity. They may have received warnings from bank personnel but continue to operate as a money mule.
  
  
• Complicit: Complicit money mules are aware of their role as a money mule and actively participate in it.

One of the most common money mule red flags is a job offer with a limited description and a promise of easy money for limited work. Another to watch out for is a notice of inheritance from a recently deceased relative you’ve never heard of. These claims should be carefully investigated before any exchange of money or personal information takes place.

Dating sites are also a fertile hunting ground for money mule scammers. Beware of online contacts you’ve never met asking you to receive money or packages and forward them to a third party. That simple request is often a first step into money laundering.

Knowing the most common methods money mules use is a good way to protect yourself. Avoid responding to “easy money” employment offers, and never agree to accept and forward money to or from someone that you don’t know, or that you’ve never met in person. If an email looks suspicious, don’t respond, and never click any unfamiliar links in an email or text message. Likewise, if you get a message that claims it’s from a bank or financial institution requesting personal information, do not respond. Your bank will not ask you for personal information out of the blue over the phone, via text, or email.

If you believe that you may be participating in a money mule scam, immediately stop communication with the suspected criminal and don’t transfer any more money or goods for them. Gather your receipts, emails, chats, text messages, and other documentation to submit to your bank and law enforcement officials. You can also visit the FBI’s Internet Crime Complaint Center (IC3). You can file a complaint about a money muling scam there. You can also contact your local FBI field office.