FDIC-Insured - Backed by the full faith and credit of the U.S. GovernmentWhat Is A Money Mule Scam
As a community bank, we are committed to helping our customers understand and avoid financial scams. One such scam that has been on the rise is the Money Mule Scam.
A money mule is someone who transfers or moves illegally acquired money on behalf of someone else. Criminals recruit money mules to help launder proceeds made from online scams and frauds or crimes like human trafficking and drug trafficking1. Money mules add layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace money trails1.
How Does It Work?
Money mule scams often involve scams related to online dating, work-at-home jobs, or prizes. Scammers send money to you, sometimes by check, then ask you to send (some of) it to someone else. They often want you to use gift cards or wire transfers. Of course, they don’t tell you the money is stolen and they’re lying about the reason to send it2.
What Are the Consequences?
Acting as a money mule is illegal and punishable, even if you aren’t aware you’re committing a crime. If you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Serving as a money mule can also damage your credit and financial standing1.
How to Protect Yourself?
● Perform online searches to check the legitimacy of any company that offers you a job.
● Do not accept any job offers that ask you to use your own bank account to transfer money.
● Be wary if an employer asks you to form a company to open up a new bank account.
● Never send money to collect a prize.
● Don’t send money back to an online love interest who’s sent you money.
How Can I Report a Money Mule Scam?
If you suspect you might be involved in a money mule scam, here are the steps you should take:
1. Break off contact with the scammers and stop moving money for them.
2. Notify your bank, the wire transfer service, or any gift card companies involved immediately.
3. Report the scam to the Federal Trade Commission at www.ftc.gov/complaint.
4. If the scam involves the United States Postal Service, report it at www.uspis.gov/report or call (877) 876-24553.
It’s important to report money mule activity as soon as possible to help prevent further victims and potentially assist in the apprehension of the scammers. Remember, if something sounds too good to be true, it probably is.