Don’t Be a Money Mule


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Money Mules are people who are used to launder stolen money or some type of merchandise. Criminals may even recruit money mules to use stolen credit cards or other information. Individuals being used as money mules may be willing participants or unknowingly be used to commit fraud. We have seen our members become involved in these scams, which potentially cause a loss to them, Members 1st, or a victim at another credit union or bank.

The most popular scam method is disguised as a “work from home” opportunity, which targets unsuspecting people interested in jobs with convenience and flexibility. Recruiting may occur through the mail or online by what only appears to be a legitimate website or advertisement. The fraudulent company will collect personal data from you such as your social security number and information on your credit union account. You may be asked to sign a seemingly official contract. You’ll receive funds in your credit union account or be instructed to transfer them to some other financial account. You may also be asked to deposit a check (actually counterfeit) into your account and then withdraw cash. The funds you receive could also be stolen from a customer at another credit union or bank.  In either case, you will be permitted to keep a percentage of the money and be instructed to transfer the remaining funds to another financial account (also associated with the criminal). By doing so, you become a Money Mule. So how do you avoid being scammed?

Remain Cautious:

  • Of any job that involves transferring money or goods (especially overseas companies requesting money transfer agents in the U.S.).
  • Of a request to open a credit union account or to receive money from someone you don’t know.
  • Of a job opportunity where you’ve never met the individual and he or she is requiring all interactions to be completed online.
  • Of a job opportunity that promises significant earning potential for little effort (if it sounds too good to be true then it’s usually fraud).

Remember:

  • You may be held responsible if you’re a Money Mule or other types of fraudulent activity have been transacted through your credit union account.
  • Money mules may be prosecuted and found personally responsible for repaying the losses suffered by the other victims.
  • Make sure you know the person with whom you’re doing business. NEVER provide your account information (account number, password, PIN, card number, etc.) to anyone you don’t know and trust.

If you believe you’ve been a victim, our Loss Prevention Team is here to help. Contact us immediately at (800) 283-2328 ext. 5202. For more information about Money Mules and other scams visit  http://www.consumer.ftc.gov/scam-alerts.

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