Money Mule Scam: How It Works
A new scam that offers the impression of adding to a fixed income has the potential even to get the victims blacklisted in authorities’ books. In the Money Mule Scheme, criminals offer their targets attractive job opportunities as “money-transfer agents.” How does the scam work?
Watch the video below to see the Money Mule Scam explained:
These ads for work-from-home jobs state that an overseas company is looking for local representatives to act on their behalf to avoid high transaction charges or local taxes.
The bogus employer then convinces the victims to deposit money into their own bank accounts, then transfer the funds to the employer’s account in exchange for a commission.
What happens is: the scammer transfers money obtained illegally through identity theft and other criminal means. They use the victim’s legitimate bank account and information to make the funds appear to be legally earned when transferred back into another account.
The victim is now part of a criminal enterprise without even realizing.
Money Mule Scam: How To Avoid
Do a bit of an online search. If a high-paying work-at-home job sounds too good to be true, it probably is. Go online and research the person or company offering work before agreeing to start the job.
If you think you’ve been a victim, stop transferring money and notify law enforcement. Here are some warning signs that people should be aware of:
1. Unusual activity, such as withdrawals or new names added, on the person’s financial accounts.
2. The victim appears to lack necessities or amenities, such as clothing and grooming items, even though he/she has the means to afford such items.
3. The target/victim appears confused, unkempt and afraid.
4. Essential bills are not paid anymore.
5. A change in victim’s will or power of attorney designation that he/she did not authorize.
Money Mule Scam: How To Report
Let your family and friends know about the Money Mule scam by sharing it on social media here, using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:
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