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Money Mule Scams

Money Mule Scams

A “money mule” is someone who transfers money through their own bank account for someone else. This scam is used to hide money gained from online fraud, scams, or crimes like human and drug trafficking. It makes it harder for law enforcement to trace illegal funds.

Some money mules know they are helping criminals, but many don’t realize they are being used. They are often tricked into thinking they are doing something legal when they are actually helping criminals steal money.

How It Works

Money mules are recruited through online job sites, dating sites, social media, online ads, and even the Dark Web. The criminal recruiter gains the victim's trust, then offers them a fake job or pretends to start a relationship. The victim is convinced to open a new bank account or use their existing one to receive funds.

The criminal sends money to the account or mails a check to be deposited. Many mules are promised a commission or cut of the money. The criminal tells them exactly how to move the money—whether by withdrawing cash, sending it to someone else, buying gift cards, or converting it to virtual currency like Bitcoin.

By using the mule's account, the criminal avoids raising red flags in the banking system. They use the mule’s information to “launder” the money, hiding its illegal origins.

Often, the funds or checks sent are counterfeit, but banks must make the money available to the account holder within days. Criminals take advantage of this, convincing the mule to withdraw or transfer the money before the bank realizes the check is fake. When the bank discovers the check is from a non-existent account, the mule is responsible for the missing money and any fees. The banks will not assume the losses.

Money mules are a low-risk way for criminals to move illegal money because they can remain anonymous and can quickly cut ties with the mule to avoid prosecution. Even mules who don’t realize they’re helping criminals can face legal trouble. Money laundering is a crime, and being a money mule can lead to debt and legal complications.

If you think you have been recruited to be a money mule or are unsure, contact law enforcement to report your suspicions.

Warning Signs:

  • Unsolicited emails or social media messages offering “easy” money.
  • Job offers through free email services like Gmail, Yahoo, Hotmail or “throw away” email services.
  • Requests to open a personal bank account to receive and transfer money.
  • Offers to keep a portion of transferred funds.
  • Work-at-home jobs that involve only moving money.
  • An online contact asks you to receive and forward funds to people you don’t know.

Never agree to:

  • A work-at-home job that asks you to transfer money.
  • Open a bank account or transfer money for someone else.
  • Give anyone access to your bank account or debit card.
  • Allow money from people you don't know to be deposited into your account.
  • Accept jobs that promise easy money for sending or receiving funds or packages.
  • Receive or forward packages or buy gift cards or virtual currency for someone else.

If you think you might be involved in a money mule or money transfer scam, stop transferring money immediately, tell your bank, and report it to law enforcement. If money was wired or a gift card was used, contact the wire transfer service company or servicer of the gift card and attempt to cancel the transaction.

Finally, report suspicious activity and communications with the Federal Bureau of Investigation's (FBI) Internet Crime Complaint Center (IC3) and contact your local FBI field office.

Report Fraud

To report fraud or if you have a general consumer complaint, contact the Attorney General's Consumer Protection Team:

Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form