Financial Crime World

Avoiding Money Mule Schemes

Money mule schemes are a type of scam where an individual is recruited to transfer money on behalf of another person or organization, often with the promise of significant earnings. These schemes can be costly and damaging to individuals and organizations alike.

Warning Signs

The following characteristics may indicate a money mule solicitation:

Red Flags

  • The position involves transferring money or goods
  • No description of job duties
  • Company is located in another country
  • No education or experience requirements listed
  • All interactions and transactions are done online
  • Offer promises significant earning potential with little effort
  • Writing is awkward and includes poor sentence structure
  • Email address uses a web-based service (e.g., Gmail, Yahoo!)

Research Strategies

To avoid falling victim to money mule schemes:

Verify the Offer

  1. Perform online searches using information from the offer:
    • Subject line of the email
    • Company supposedly offering the position
    • Person who signed the message or contact person mentioned
  2. Check for indications that the offer might be a scam.
  3. Look up the company on the Better Business Bureau website.

Precautions

Individuals and organizations can take precautions to minimize their risks:

Individual Precautions

  1. Investigate the person or company before doing business with them.
  2. Use a method that protects transactions, such as bank transfers, credit cards, or services like PayPal.
  3. Monitor transactions and track orders.
  4. Contact authorities immediately if you notice any problems.

Organizational Precautions

  1. Implement anti-virus and anti-spyware software and keep definitions up to date.
  2. Limit access to sensitive data to authorized personnel.
  3. Regularly check records, including employee lists and recent financial transactions.
  4. Consider isolating computers that perform banking and accounting functions.
  5. Watch for suspicious behavior or activities from employees.

Additional Resources

The following resources can provide more information on avoiding money mule schemes:

  • US-CERT resources on avoiding social engineering and phishing attacks
  • Internet Crime Schemes: Employment/Business Opportunities (IC3.gov)
  • Money mule blog articles by Brian Krebs
  • Fraud Advisory for Consumers and Businesses