Money Mule Scams: Don’t Move Money at the Direction of Others

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What is a Money Mule Scam?

Money mule scams involve using a person as a "mule" to transfer or move illegally acquired money on behalf of someone else.

Fraudsters target potential mules on social media sites, asking users to establish new accounts or use their existing credit union or bank accounts. They ask that you accept money into your account via fraudulent account transfers, counterfeit checks and other deposits. As the mule, you are then asked to move the money out of the account (via wire transfers, debit card purchases, cash withdrawals, etc.) under the fraudster's control, with the promise that you will receive a commission or part of the funds.

Although you may be enticed by receiving this "free" money, understand that you are financially responsible for your account and all fraudulent items will be charged against your account.

Acting as a money mule is illegal and can result in jail time, even if you are not aware you are committing a crime. Financial institutions, like Members 1st, cooperate with law enforcement to identify instances of money mule scams and hold fraudsters accountable.

If you are moving money at the direction of another person, you may be serving as a money mule. Before you agree to do so, please stop and consider the possible impact of your actions. If you are unsure if something you are being asked to do is a scam, please contact us – we are here to help. Always remember, if it sounds too good to be true, it probably is.

Follow these tips to stay safe:

• Do not respond to social media advertisements and requests to "Earn Money with your Credit Union or Bank Account." No legitimate jobs or companies will ask you to use your bank account to transfer money for them.
• Do not respond to unknown text messages, emails or phone calls.
• If someone claims to be representing a known company or government agency, but something feels off, hang up. Then, use a trusted telephone number or other trusted contact information to reach out to the company or agency and verify the request is coming from them.
• Never give your financial details to someone you don't personally know and trust, especially if you meet them online.

As a money mule, some federal charges you could face include mail fraud, wire fraud, bank fraud, money laundering and aggravated identity theft. Not only do you risk having your personal information stolen and used by the criminals you are working for, but you can also damage your credit and financial standing. You can also be held personally liable for repaying money lost by victims.

At Members 1st, your financial safety and security is our top priority. While scams like this can sound and be scary, we are here to educate you and help you protect yourself and your finances. Please visit a branch location or reach out to our team with any questions, concerns or if you think you have become the victim of fraud.