Money muling is a form of money laundering whereby a person, the money mule, receives money from a third party in his bank account and the latter transfers it to another account or withdraw the money in cash and gives it to someone else. The money mule receives a commission for each transaction made. Usually, people with no criminal history are targeted by fraudsters so as to make these transactions seem less suspicious to banks. The money mules have no idea of the source and the destination of the money. The funds could be used to fund drugs, child trafficking or even terrorism.
The concept of money muling is not a new technique to the criminal world. Decades ago, drug traffickers used people (and still are) to transport drugs domestically or across international borders in small amounts fractured from bulk transactions. A similar task is conducted by money mules when structuring financial transactions.
According to the U.S.-Computer Emergency Readiness Team (US-CERT), money mules are “people…used to transport and launder stolen money or some kind of merchandise. Criminals may…recruit money mules to use stolen credit card information. Individuals…may be willing participants; however, many…are not aware that they are being used to commit fraud.”
Nevertheless, the reality remains that even if money mules are not directly involved in the crimes that generate the money, they are accomplices, as they launder the proceeds of crimes. In simple words, money mules help criminals to remain anonymous while moving their illicit funds around the world.
The Process Of Money Mules Recruitment
Recruitment is usually done through job vacancies and “work-from-home” ads using email, print media, Internet chat rooms, or job and temp-for-hire web sites whereby the mule is convinced to work for a fake company. Personal identifiable information through official-looking contracts or employment forms may also be solicited.
Once the individual gets in the trap and is ‘officially a money mule’, the latter receives illicit funds into his personal bank account and is finally instructed to remove the funds from his account and send them to another party.
Who Are The Most Targeted Individuals?
Young people aged less than 25 are deemed to be six times more likely to become money mules (Sky News). In an article published by BBC in September 2019, it has been observed that criminals are recruiting a rising number of teenagers to act as money mules to help them launder the proceeds of crime.
In fact, in the UK, the number of cases of 14 to 18-year-olds who have allowed their bank accounts to be used to divert funds has grown by 73% in two years.
A major reason why these young people are the perfect target for fraudsters is because their accounts are likely to be “clean” without a history of criminal activity, and they might not understand the potential repercussions of taking part in a scam like this.
Possible Money Mules Red Flags
ACAMSTODAY provides the following list of red flags to help financial institutions to identify the presence of money mule activity. However, this list is not exhaustive.
- Opening of a deposit account with minimal deposit soon followed by large electronic funds transfer (EFT) deposits;
- Suddenly receiving and sending EFTs related to new employment, investments, acquaintances, etc., (especially Internet opportunities);
- New deposit account with unusual amounts of activity;
- Incoming EFTs then shortly afterward outgoing wire transfers or cash withdrawals approximately 8–10 percent less than the incoming EFTs;
What should you do if you suspect activities of money muling?
Europol advices the following:
- If you have received suspicious emails, do not respond to them and do not click on any links they contain.
- Stay alert for job ads and social media posts that promise easy money.
- If you happen to receive an offer in person, decline it.
- If you suspect that you are caught up in a money mule or money laundering scheme, stop transferring money immediately, and notify your bank or payment provider.
- All the circumstances mentioned above should be reported to the Police.
Recent Comments