Did you know social media has become a major playground for money mule scams resulting in a $1.4 billion loss? Money mule scams are a way for criminals to conceal the source of their funds, typically garnered through illegal activities like fraud, identity theft, drug trafficking, and more.

One common tactic is recruiting people to move the money on their behalf, using those individuals’ names and accounts. These persons, known as “money mules,” help criminals hide their money trails, making it more difficult for law enforcement to trace illicit transactions. However, not everybody involved in a money mule scam is aware they are supporting criminal activities. 

Here’s what you need to know to recognize and protect yourself from money mule scams.

Three common money mules:

• Unknowingly: individuals lured into a mule scheme through various scam techniques. This may include fake job listings, romance scams, investment scams, or other deceptions.
• Knowingly: individuals who willfully ignore obvious red flags and engage in illegal activity for profit. 
• Complicit: individuals who are actively aware of their role as a money mule in illegal activities.

Common money mule scams and how to avoid them.  

If someone sends you money and asks you to send a portion or all of it to another person, it could be a sign you’re being used as a money mule. Scammers often contact potential money mule victims via social media or phone, making it harder for law enforcement to trace the funds back to their illegal activities. Some common money mule scams using social media include:

• Fake job offers: Fraudsters will reach out via social media with a “high-paying” job opportunity that’s typically remote and in the financial or bookkeeping field. Victims are then instructed to transfer large sums of money to money mule accounts on behalf of the fake employer.
• Phony charity scams: Scammers on social media pose as charitable organizations representatives and ask for donations for disaster relief, medical emergencies, and more. In most cases, they will convince victims to transfer funds to various accounts only to use them for larger money mule transfers. 
• Lottery/prize offers: Individuals who enter lotteries or giveaways online are contacted by fraudsters announcing their winnings and instructing them to transfer funds to cover taxes or processing fees. In reality, these victims are sending money to fraudsters, helping conceal the paper trail of this scam.

To protect yourself and your personal information, avoid using your bank account — or opening a new one — to transfer money on behalf of someone else. You should also avoid signing or accepting checks from unfamiliar names and be cautious of cash winnings that seem too good to be true. Most importantly, never share banking information, including one-time verification passcodes.

What you should do when detecting a money mule scam.

If you suspect you’re being targeted by a money mule scam, you should:

• Immediately stop all communication with the fraudster.
• Do not send any further funds.
• Quickly notify your bank about suspicious activity.
• Collect all important information about the scam and report it to local authorities, including the FBI’s Internet Crime Complaint Center (IC3).

The IC3 is the central hub for reporting cyber-enabled crime, and any relevant information can help them detect patterns to catch fraudsters targeting victims as money mules. 

Staying vigilant of money mule scams is the first line of defense to protect yourself from falling victim. Regularly monitoring unusual account activity and verifying transaction sources can safeguard your account and personal information. If you believe your information is compromised, contact your bank immediately. For more resources, visit our Fraud Prevention page at efirstbankblog.com.

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Published: March 10, 2025