What Is the Money Mule Scam?
Criminal networks often obtain a vast amount of cash from their illicit activities.
Source: Freepik
But to move it around without attracting the attention of law enforcement agents, they need help from a money mule.
Criminals Search for Money Mules
Criminal groups will scout for unsuspecting members of the public and approach them in person or online in hopes of using their bank accounts for illicit scams.
Source: Freepik
Typically, the criminal sends a large sum of money to the unsuspecting victim, who is then instructed to send it to another account. Hence, they become money mules.
Members of the Public Offered Easy Cash
Members of the public are generally offered a cash fee for their role in the transfer.
Source: Freepik
To many, it may simply appear as a quick way to help out a fellow American and earn some fast cash in the process. However, the Internal Revenue Service says that this scheme is highly illegal and has become increasingly frequent.
Assistant Special Agent Speaks on Money Mule Scams
The IRS recently issued a warning against committing to unusual bank transfers, suggesting the public should avoid accepting a payment for such an act.
Source: Freepik
Assistant Special Agent in Charge Angelo Horiates III encourages the American public to stay alert when they receive such offers and report them to the police, per WZZM13.
Be Careful Online
Horiates issued a warning to all Americans, suggesting they avoid replying to unsolicited messages from people asking them to partake in bank transfers.
Source: Freepik
“Be careful with unsolicited emails or social media messages, people approaching you, and they’re promising easy money for little to no effort,” says Horiates.
No Such Thing as Free Money
The assistant special agent emphasized that there’s no such thing as free money.
Source: Freepik
“As we all know, nothing in life is easy. And somebody to offer you money with little to no effort should raise a concern,” he said.
IRS Launches New Investigation Unit
With the surge in money mule scams, the IRS has been forced to take drastic steps to stop the illicit practice.
Source: Wikimedia
The federal organization’s criminal investigation unit has started a new program that aims to track and identify facilitators of this crime.
Consequences of Taking Part in Money Mule Scam
According to the American Bankers Association, severe consequences could result for those who willingly participate in a money mule scam.
Source: Freepik
Even if the participant is unaware of the scam, they could still be prosecuted, face a fine, and even end up in jail.
Ways to Avoid Taking Part in a Money Mule Scheme
According to the American Bankers Association, there are several ways U.S. citizens can avoid falling into a trap and unwillingly becoming a money mule.
Source: Freepik
The first and most obvious is never to reply to unsolicited emails or communications that offer free cash in exchange for transferring money through a bank account.
Never Share Bank Details
Further tips include never sharing your financial details or giving anyone access to your bank account.
Source: Freepik
Also, avoid transferring money to a romantic partner whom you’ve recently met online.
Report the Crime Immediately
For those who recognize they have just participated in a money mule scam, break communication immediately and stop the flow of transfers.
Source: Freepik
Following this, immediately report the incident to the FBI’s Internet Crime Complaint Center. This may reduce the chances of criminal charges being brought against you.