What is a Money Mule?

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What is a Money Mule? Blog Image

Overview:

Young people under the age of 21 account for around one in five cases in the UK where money muling activity is suspected, according to new figures.

About Money Muling:

 

  • A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
  • Criminals recruit money mules to help launder proceeds derived from online scams and frauds or crimes like human trafficking and drug trafficking.
  • Money mules add layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace money trails.
  • Money mules can move funds in various ways, including through bank accounts, cashier’s checks, virtual currency, prepaid debit cards, or money service businesses.
  • Some money mules know they are supporting criminal enterprises; others are unaware that they are helping criminals profit.
  • When such frauds are reported, the money mule becomes the target of police investigations. 
  • Money mules often receive a commission for their service, or they might provide assistance because they believe they have a trusting relationship with the individual who is asking for help.

 


Q1) What is Money Laundering?

Money laundering is the illegal process of making large amounts of money generated by criminal activity, such as drug trafficking or terrorist funding, appear to have come from a legitimate source. The money from the criminal activity is considered dirty, and the process “launders” it to make it look clean.

Source: ‘Fifth of suspected money mule cases involve under-21s’