What Are Money Mule And Check Mule Scams?

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Money mule and check mule scams are serious and illegal money laundering schemes. Scammers often target people with an unexpected email from a fake company offering to purchase raw materials for manufacturing or offering to hire the victim as a company representative to handle incoming payments from customers. The victim may be asked to act as a purchasing agent to buy these materials or as an accounts receivable representative to receive payments for the company. These email scams often involve fake websites controlled by the scammer. Other times, scammers target people seeking employment or contact victims through LinkedIn, Facebook, or free job posting sites. University students looking for part-time work are also sometimes targeted, as scammers may advertise these “jobs” on websites where students search for part-time opportunities.

Once the victim shows interest, scammers offer part-time, work-from-home positions that may sound like personal assistant, accounts clerk, company representative, purchasing agent, or other clerical roles. They tell the victim that part of their job is to receive and forward or make payments for the company using their personal bank account or a digital payment service via an app. However, there is no legitimate company, only fake company names, websites, documents, etc., and no lawful money involved. These scams are designed to make the victim unknowingly handle stolen or fraudulent funds, often from other scam victims, fake checks, or stolen credit cards.

If you receive a fake check from a scammer via postal mail, the check may appear authentic, often printed using high-quality printers. It might contain both real and forged bank account numbers from a legitimate company whose account information has been stolen by the scammer. If the company’s bank account has sufficient funds, the check may initially clear and appear in the victim’s account temporarily. However, the check will eventually bounce once the real company disputes it with their bank. This can lead to the victim’s bank account being frozen, and the victim could face criminal charges for bank or check fraud.

The victim may then be asked by the scammer to transfer the stolen funds (minus the victim’s so-called commission) to the scammer via crypto currency (such as Bitcoin) or to use Zelle, Venmo, or other untraceable digital payment methods. Once the victim sends this money, it is lost permanently. The scammer is often located in a different country, making it difficult for the victim to trace or recover the funds or for law enforcement to take action against the scammer. Typically, the victim only has an email address and, in some cases, a disposable and untraceable WhatsApp phone number for the scammer, making it nearly impossible to trace the scammer once the victim encounters legal problems.

Scammers often promise a commission for processing payments to make the job seem legitimate and lucrative, which is what motivates victims to fall for these scams in the first place. However, once banks or payment platforms detect fraudulent activity, any commissions or fees paid to the victim’s account may be blocked, frozen, or confiscated, and the victim’s bank account will likely be locked, often permanently. The victim may then face legal consequences, including charges of financial crimes, bank fraud, or money laundering, which could result in jail time, additional fines, and/or a permanent criminal record. This can severely impact the victim’s ability to open future bank accounts, obtain credit cards, secure employment, and carry out normal financial activities.

Additionally, any stolen or fraudulent funds sent to the victim may be reversed or reclaimed by the bank or payment apps, as mentioned earlier. Any Bitcoin or cryptocurrency purchased and sent to the scammer with the victim’s money is lost permanently.

If you believe you are a victim of a money mule scam, stop processing any further payments immediately, contact your bank to report the transactions, and seek legal advice from a qualified lawyer.

Remember: No legitimate employer will ask you to receive and forward payments using your personal account. Any job, employment, or partnership requiring this is a scam.

You can read additional useful information about money mules on the following link:

https://www.ic3.gov/PSA/2021/PSA211203