Ever wonder how cyber criminals clean their money? Often, it's through the unsuspecting bank accounts of ordinary people.
Welcome to the world of money mules, where an innocent favour or even a job offer can land you in serious legal trouble.
We’ve got you covered with this comprehensive guide to money mules, how they recruit and how they're caught.
What is a Money Mule?
A money mule is a cybercriminal that allows money to be moved through their account as a form of money laundering.
Their purpose is to disguise where money comes from in order to disguise illegal activity.
Often money mules may not even understand that they are committing a crime. Advanced cyber criminals or gangs will target vulnerable people through different forms of phishing and social engineering.
However, even if the mule is unaware they are participating in a crime they are still considered complicit in the eyes of the law.
Consequences can include criminal charges and a permanent record. In extreme cases, prison sentences of up to 14 years are on the table.
Bank accounts will be closed and mules will face significant difficulty obtaining essentials like mortgages, credit cards and phone contracts in the future.
Fake job listing scam
Criminals create realistic-looking job adverts for roles like "financial agents," "payment processors," or "local representatives". Often these are advertised on legitimate job boards including Indeed and LinkedIn. Sometimes they are emailed or texted directly to a victim.
The jobs listed often require little to no experience and offer high pay for minimal effort.
Through professional looking websites and a recruitment process involving interviews and training manuals, the criminals build up the appearance of credibility.
During the process they will explain that the "job" involves receiving funds into a personal bank account and then transferring them to other accounts (often overseas), keeping a small percentage as commission.
They will explain away the fake reason behind the transfers as "international tax laws," "testing payment system” or "client preference".
Students are among the key groups targeted. These young people are often living away from home for the first time and in need of extra money. Because of their lack of financial literacy they are susceptible to job offers that are too good to be true.
Romance scam
Scammers also create fake online profiles on dating sites or social media in order to find victims through romance scams.
The scammer's goal is to earn the victim's trust and to then ask for help or money. They may give reasons like medical emergencies or travel expenses to visit the victim.
They may have already acquired information about the victim from previous phishing, vishing or smishing scams, identifying them as an easy target and building a profile most likely to attract them.
Accidental overpayment scams.
Here, the mule will receive an unexpected transfer into their account.
The cybercriminal sender will then contact them and claim it was an "accidental" payment or an "overpayment" for something bought online, such as a Depop or Ebay listing.
They will then ask the target to refund the "overpaid" amount to a different account or via a different method.
What is a Mule Herder?
A mule herder is a cybercriminal who actively recruits, manages, and directs money mules. They often orchestrate the cyber scam, controlling multiple levels of money laundering.
Mule herders find and target victims to become money mules, using social engineering techniques outlined above including fake job offers and romance scams.
Once recruited they will direct the mules to transfer money in and out of their accounts. Mule herders often manage multiple money mules simultaneously, This creates a network of accounts through which criminal funds can be continuously disguised as they are moved around.
How Do Money Mules Get Caught?
Typically money mules get caught through a combination of alerts from banks and proactive investigation from law enforcement.
Atypical patterns in banking behaviour raise red flags to institutions who may choose to investigate. These institutions will use advanced transaction monitoring software, often incorporating machine learning and AI, to analyse a vast amount of financial data.
If anything suspicious flags up, banks will ask the account holder to explain the nature of transactions.
If their internal investigation confirms a high probability of money muling, they will typically report to authorities.
From here, law enforcement agencies will investigate the mule network through data sharing, link analysis, graph analytics and behavioural biometrics.
While the pull of easy money or a deep emotional connection can be powerful, the risks of money mulling far outweigh any benefits.
How to Protect Yourself From Money Mule Scams
It’s important to be aware that money mules are, sometimes unknowingly, helping criminals launder billions from scams, drug trafficking, and more. If you're not careful, you could be next.
If you think an offer is too good to be true- it probably is. Be vigilant of any offers that involve moving money through your accounts. Never accept money into your account if you don’t know where it’s from. Remember that a legitimate company would never ask you to handle company funds with your personal bank account.
Be wary of anyone you meet online but not in person, especially if the relationship seems to escalate quickly or if they ask you to send them money.
Implementing simple measures like verifying information, exercising caution with unsolicited communication, and reporting suspicious activity can significantly reduce the risk of falling victim to money mule scams.
Stay informed on the latest cybersecurity threats and protective measures. Keep up to date with EM360Tech for expert insights and crucial advice to protect your digital life.
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