A money mule is a person who transfers stolen money on behalf of others, usually through their bank account. Criminals contact people and offer them cash to receive money into their bank account and transfer it to another account. This person is known as a 'money mule'.
What is money mules in money laundering?
Money Mules are individuals who transfer illegally obtained money on behalf of others using bank accounts, wire transfers, money orders, or checks.
What is a mule account?
The money mules transfer stolen funds between accounts, often in different countries, on behalf of others. After receiving stolen money into their account, they are asked to withdraw it and wire the money to a different account, which is often one overseas.
What to do if you have been used as a money mule?
If you believe that you are participating in a money mule scheme, stop transferring money and merchandise immediately and notify the appropriate authorities. These authorities may include your bank, the service you used to conduct the transaction, and law enforcement. The position involves transferring money or goods.
What is mule account?
A money mule, sometimes called a "smurfer," is a person who transfers money acquired illegally (e.g., stolen) in person, through a courier service, or electronically, on behalf of others. The money is transferred from the mule's account to the scam operator, typically in another country.
What happens if you are a money mule?
If you are a money mule, you could be prosecuted and incarcerated as part of a criminal money laundering conspiracy. Some of the federal charges you could face include mail fraud, wire fraud, bank fraud, money laundering, and aggravated identity theft.
How does a money mule work?
A money mule is a person who receives money from a third party in their bank account and transfers it to another one or takes it out in cash and gives it to someone else, obtaining a commission for it.
How do you get away with being a money mule?
Avoid Becoming a Money Mule If you believe that you are participating in a money mule scheme, stop transferring money and merchandise immediately and notify the appropriate authorities. These authorities may include your bank, the service you used to conduct the transaction, and law enforcement.
Is it illegal to be a money mule?
Anyone can be recruited to be a money mule; however, targeted populations include the elderly, college-aged students, and newly immigrated individuals. Cyber-expertise or knowledge is not required the money mule will be directed how to open accounts and process various transactions.3 Dec 2021
What is the punishment for money mule?
If you are caught acting as a money mule, even if done so unwittingly, you can face a prison sentence, fine or community service, and the prospect of never again being able to secure a mortgage or open a bank account.
How do money mules get caught?
How are money mules caught? Banks have systems in place to detect suspicious money moving between accounts. Once detected, the bank will notify the authorities so that they can take action to catch the money mule and the criminals involved.
Why do people use money mules?
Criminals recruit money mules to help launder proceeds derived from online scams and frauds or crimes like human trafficking and drug trafficking. Money mules add layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace money trails.