FBI: You May Be A Money Mule And Not Even Know It

The FBI has warned of an increasing number of scammers preying on unemployed Americans by trying to recruit them into their money mule schemes and use them to launder funds obtained via fraud, online scams, and other types of criminal activities.

Money mules are individuals who transfer or move illegally acquired funds on behalf of criminals using their own or fraudulently opened bank accounts, with or without being aware that they are supporting a criminal operation’s money laundering efforts.

There are multiple types of money mules: witting money mules are those who ignore all the red flags, complicit ones are those that are actively involved in the fraudulent scheme, and unwitting (or unknowing) ones are individuals who are unaware of their role and act based on trust.

Job seekers are more exposed than ever to falling for scammers’ tricks and getting ensnared as unwitting money mules due to the decreasing number of available jobs and the unemployment surge caused by the COVID-19 pandemic.

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“Acting as a money mule—allowing others to use your bank account, or conducting financial transactions on behalf of others, jeopardizes your financial security and compromises your personally identifiable information,” the FBI Baltimore Field Office warned. 

“Protect yourself by refusing to send or receive money on behalf of individuals and businesses for which you are not personally and professionally responsible.”

Work from home “opportunities”

Money mules are behind most of the $3.5 billion financial loss caused by fraud between 2015 to 2019 according to reports received by the FBI’s Internet Crime Complaint Center (IC3).

This year criminals had an even easier job due to the increasing number of workers being laid off during the pandemic, workers who now are actively looking for new employment.

Scammers are now increasingly trying to ensnare U.S. Job seekers as money mules via “work from home job opportunities” published even on reputable job search sites according to the FBI.

This makes it a lot easier for them to reach more potential targets who are now a lot more susceptible to falling for such schemes.

After getting “hired,” unwitting money mules are asked to use their bank account or one provided by the scammers to accept “donations.”

They are later asked to deposit the funds to cryptocurrency addresses controlled by the criminals using a “kiosk” or a Bitcoin ATM, wire them to the fraudsters’ bank accounts, or use them to purchase gift cards or various other transferrable assets.

The FBI provides a list of signs that you may be a money mule without even knowing it and measures to protect yourself from money mule schemes.

The US intelligence and security service also urges you to reach out to the FBI or local police if you’ve been targeted or unwittingly involved in this type of fraudulent activity.

Not knowing you’re a money mule is still a crime

“Your acceptance and transfer of the stolen money could be considered a violation of federal money laundering statutes, especially if the activity is prolonged or you keep any of the funds for yourself,” the FBI added.

“Even if you do not personally profit, this illegal money mule activity could open you to criminal prosecution while the scammer gains access to the funds without being directly connected to the initial fraud.”

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

Money mules recruited by international money laundering networks are, eventually, hunted down by law enforcement and prosecuted (1, 2, 3, 4).

On Wednesday, the Department of Justice announced the completion of the third annual Money Mule Initiative which resulted in 2,300 money mules being prosecuted after taking action against more than 600 others during last year’s action.

This is the second warning issued by the FBI regarding cybercriminals increasingly exploiting the public fear and uncertainty surrounding the COVID-19 pandemic to recruit money mules after a previous one published in April by the FBI National Press Office.