Money Mule Scams

Money Mules - receive and move money from fraud victims, often under the direction of someone else. Some knowingly assist fraudsters, while others unknowingly participate, thinking they're following legitimate instructions or working for a real business.

The Silent Trap

For many of us, sending a money transfer feels as harmless as ordering a pizza online. A quick click, a few taps, and the funds are on their way! Yet, behind that familiar “Transfer” button, can lie a sophisticated scheme that can turn any internet user into an unwitting courier for fraudsters. This hidden threat can target anyone... from students earning a side gig to parents sending birthday gifts. Money Mules are one of the most deceitful, sneaky scams of our connected age.

If something sounds too good to be true, it most likely is. To avoid becoming a money mule, ask yourself these questions before exchanging money with someone:

You received an unsolicited email or contact over social media, which promises easy money for little or no effort. You may be referred to as an “employee.”

You were hired without a formal interview process. You were onboarded through social media.

You have no written job description that defines your responsibilities and compensation. You don’t have a regular pay schedule or rate.

You are asked to deposit money in:

  1. Your existing bank account,
  2. A new account in your name or
  3. A new account in the name of a company you form. Your “employer” may also request your ID and passcode so they can access the money directly.

Your online “employer,” whom you have never met in person, asks you to forward the funds
you received to them or someone you do not know.

You are instructed to move the money through a service.

Legitimate payment methods are used by criminals to conduct illegal activities.
Examples include:

  • Money service businesses (i.e., Western Union, MoneyGram).
  • Bank services (i.e., wire transfer, ACH).
  • Digital currency/crypto.
  • Gift cards.
  • Peer-to-peer applications (i.e., PayPal, Venmo, Zelle).
  • ATM cash outs.

You are told to keep a portion of the money you transfer.

Consequences

According to the FBI, operating as a money mule is unlawful and carries serious penalties, even if you don’t realize you’re committing a crime. If you take on the role, you risk being prosecuted and jailed as part of a money‑laundering conspiracy. Federal offenses that could be levied against you include mail fraud, wire fraud, bank fraud, money laundering, and aggravated identity theft. Besides the legal ramifications, acting as a mule can damage your credit and financial standing, expose you to identity theft by the criminals you’re helping, and make you personally liable for reimbursing victims for any losses.

Being a money mule is illegal. You can be prosecuted and incarcerated as part of a criminal laundering conspiracy, even if you are unaware you are committing a crime. If you suspect you’ve been a money mule, please contact us for guidance on how to report it. 

How to Report Suspected Fraud

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  • Morton Community Bank is an Illinois Chartered Bank which includes Clock Tower Community Bank and all your Hometown Community Banks. 
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Morton, IL
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