Money mules | What is a money mule?

Reading time 5 minutes

At a glance:

A money mule is someone who is used by a criminal to move money between financial accounts.

The term ‘mule’ comes from the idea of someone transporting a load on someone else’s behalf, like the animal that can be used to carry things.

Criminals deposit money into the mule’s account, and they tell the mule where to send it.

How does someone become a money mule?

These are the steps to someone becoming a money mule:

Contact - Criminals reach out to a potential ‘mule’. This could be with job ads, online messaging, or even face to face requests.

The activity - The offer seems real, like a job moving money between accounts, or handling online sales. The potential mule isn’t always aware this involves criminal activity.

Getting the money - The mule receives money in their bank or savings account.

Transferring the money - The criminal tells the mule to transfer the money to another account, keeping a small percentage as ‘payment’.

Unknowing involvement - While it may seem like an easy way to make money, the mule is laundering money from criminal activities. This is illegal.

How are potential money mules targeted?

By phone - criminals call people with a job offer or opportunity. These calls can be convincing, making it seem like an easy way to earn money.

By social media - Criminals post job ads and send messages with offers of work or quick money. These offers can show up in your feed or inbox, making them seem real.

In person - Sometimes, scammers approach people directly. Often this happens in places where people are looking for work or financial help. This can make the offer seem more credible and urgent.

Through familiar contacts - Offers can come from someone you know, making them seem more reliable. We rarely suspect friends of trying to scam us, but they may be mules themselves and not realise the risk.

Targeting vulnerable groups - Fraudsters often prey on people who need extra money. This can include students or those in financial difficulty.

What are the consequences of being a money mule?

Being a money mule can have serious consequences. Someone who acts as a mule may:

Be sentenced to up to 14 years in prison

Get a criminal record - This can affect future job opportunities and the ability to travel to certain countries.

Have their bank account restricted or closed – Banks share information on criminal activity, so they may not be able to open a new account.

Be required to pay financial penalties – They could be held liable for the money transferred. This could lead to large financial penalties and debts.

Damage their reputation - Involvement can damage personal and professional reputation. This can make it difficult to rebuild trust with employers.

How to spot money mule recruitment

There are a lot of warning signs you can look out for to spot where an opportunity might be money mule recruitment:

Unexpected job offers - Be cautious of job offers that are unsolicited and promise easy money for minimal work. Especially if the company is located overseas.

Vague job description – Look out for offers lacking clear details about the job role or company.

Requests to use your bank account - Be wary if you are asked to use your personal bank account to move money.

High-pressure tactics - Criminals may use urgency to push you into making quick decisions.

Lack of professionalism - Poor grammar, typos, and unprofessional language in emails or messages can indicate it isn’t a legitimate job.

Unusual payment methods – Stay alert if you are asked to transfer money through odd methods, such as cryptocurrency or gift cards.

What are the consequences of being involved in money muling?

Hannah Bingle, our Financial Crime Awareness Specialist, explains the impact of money mule scams:

Money mules make it harder to track financial crimes because they add an extra layer for money to pass through from victims to criminals.

Being a money mule isn't harmless; it's against the law and can lead to having your accounts closed, trouble opening new ones, and even facing legal action, including prison time.

If you’re approached by someone offering to help you make money by using your accounts, don’t hand over any personal information, passwords or access codes. It’s not worth the risk.