Amoney mule, sometimes called a "smurfer",[1] is a person whotransfers money acquired illegally, such as by theft or fraud. Money mules transfer funds in person, through a courier service, or electronically, on behalf of others. Typically, the mule is paid for services with a small part of the money transferred. Money mules are often recruited on-line under the guise of legitimate employment, not aware that the money they are transferring is the product of crime. Similar techniques are used totransfer merchandise illegally.
Commonly, mules are recruited with job advertisements for "payment processing agents", "money transfer agents", "local processors", and other similar titles; the real benefit to the criminals is not the work carried out by the mule, but that the criminals are distanced from the risky, visible transfer. Some money mules are recruited by an attractive member of the opposite sex. After deducting a relatively small payment for themselves, candidates are asked to accept funds and to forward them to a third party, viaremote work. Legitimate companies useescrow services for this kind of work.[2] Mules recruited online are typically used to transfer the proceeds from online fraud, such asphishing scams,malware scams or scams[3] that operate around auction sites likeeBay.
After money or merchandise has been stolen, the criminal employs a mule to transfer the money or goods, hiding the criminal's true identity and location from the victim of the crime and the authorities.[4]By using instant payment mechanisms such asWestern Union, the mule allows the thief to transform a reversible and traceable transaction into an irreversible and untraceable one.[5]
If an innocent third party's bank details have been compromised, they can be used as a mule without their knowledge, something sometimes called "Cuckoo smurfing".[1]
Criminals trading in stolen or illegally acquired goods use similar tactics to recruit mules who receive packages and forward them tomail drops not traceable to the criminal.[6]
Bitcoin ATMs were reported byBrian Krebs in 2016 to be rising in popularity for money muling.[7]
Money mules are complicit and risk criminal prosecution[8] and longjailsentences.
In 2010, The FBI Cyber Crimes Task Force, composed of Federal, State, and Local law enforcement, charged more than 37 defendants involved in a highly organized money mule scheme, facilitated by theZeus Financial Trojan. This group of money mules opened several bank accounts, using both real and fake identification, to receive stolen funds from compromised bank accounts, withdraw the stolen money, then wire the stolen funds overseas. These money mules facilitated the theft of over $3 million from victim bank accounts.[9]
Types offraud | |
|---|---|
| Business-related | |
| Family-related | |
| Financial-related | |
| Food-related | |
| Government-related | |
| Healthcare | |
| Other types | |
