“Money Mules as a Service”: A Lucrative Business for Scammers

A recent report has shed light on the lucrative world of “Money Mules as a Service,” where illegal payment service providers offer their services to scammers looking to launder stolen funds.

How it Works

Organized criminals have set up hundreds of shell companies with European bank accounts, which receive deposits from victims and forward them to the scammers’ operating companies. The money mule operators earn commissions of up to 3% per transaction for their services.

Notorious Scammer Gal BARAK’s Scheme

The report highlights the case of Gal BARAK, a notorious scammer who used this service to launder millions of euros in stolen funds. BARAK maintained bank accounts with Postbank/Deutsche Bank and banks in the Czech Republic, which were used to transfer funds between shell companies.

The Payment Services Sector

Industry insiders have revealed that the payment services sector for fraudulent websites is booming due to its high revenue potential. The report notes that:

• Shell companies act as operators, service companies, and offshore owner companies.
• Company builders provide virtually infinite numbers of shell companies with frontmen as directors and nominal owners.

Offshore Destinations

The investigation found that BARAK’s scheme used companies based in offshore destinations such as:

• Marshall Islands
• British Virgin Islands
• St. Vincent, and the Grenadines
• Samoa (pre-funded with Bulgarian accounts at the time of acquisition)

These companies were then used to launder stolen funds through a complex network of shell companies.

Bulgaria’s Popularity Among Scammers

The report highlights Bulgaria’s popularity among scammers due to its:

• Membership in the European Union, providing access to the European financial market
• Large pool of ambitious young citizens with good foreign language skills
• Lack of effective compliance policies at Bulgarian banks

Ease of Cooperation with European Banks

Experts believe that the ease of cooperation with European banks is critical for money laundering operations, making it difficult to identify and prosecute these crimes.

Recommendations

As the illegal payment service provider industry continues to evolve, authorities must adapt their strategies to combat this growing threat. The report concludes that:

• Authorities must develop more effective strategies to detect and prevent money laundering
• Bulgaria’s judicial system needs to improve its effectiveness and reduce corruption
• Cooperation between European countries is crucial in combating this global problem

In conclusion, the “Money Mules as a Service” industry is a lucrative business for scammers, and it requires a coordinated effort from authorities to combat this growing threat.