Money Mule: A Dimwit Sold In His Own Territory

(MENAFN- Kashmir Observer)
Representational Photo

By sheikh Nissar

Haste to be rich is a great danger. It tempts a person to think of shortcuts, whether in the form of an opportunity or a scam. The tendency to take shortcuts is influenced by the content you consume and the people you associate with. In reality, shortcuts usually lead to disappointments and may land you in trouble that is too big to handle. Yes, everyone aims to make money in the easiest and fastest way possible, but the advice found on social media tempts people to follow a licentious path. Shortcuts to making millions is a fairy tale untrue in any world. The best financial shortcut is to understand that there is no fancy shortcut.

The shift of banking to digital channels has led to an epidemic of scams. From stealing modest sums a few years ago to now being part of a well-established network executing major frauds, scammers are using both human resources and technology to cheat people. Investigators have revealed that scammers are using never-before-seen capabilities of artificial intelligence to dupe individuals, thus shaking public trust in institutions. In order to avoid detection and conceal the origin of their illicit funds, criminals are using sophisticated methods to spread stolen money across a huge array of digital wallets and bank accounts, making it almost impossible for law enforcement to trace the origin of the funds. Once the funds are received from victims' accounts, the scammers transfer the illicit funds into an individual's account, creating a cascade of fund transfers that makes the transaction appear legitimate. They exploit the bank accounts of vulnerable individuals by offering small sums of money or commissions to acquire access to these accounts, using them as a conduit for transferring the stolen money. Hence, a money mule is born.

A money mule is a person who knowingly or, in certain cases, unknowingly helps criminals launder their illicit or stolen money by providing their own account or digital wallet to receive or transfer funds. There are three types of money mules: unwitting or unknowing, witting, and complicit. An“unwitting money mule” is a person who is unintentionally part of a larger money laundering scheme. Similarly, a“witting money mule” is someone who is willfully blind to or ignores obvious red flags. A“complicit money mule” is intentionally involved in moving illicit profits and is aware of their role. The accounts used by criminals or fraudsters to launder illicit funds are called mule accounts. Those controlling the network are commonly referred to as money mule“herders,”“controllers,” or“recruiters.”

Money mule recruitment is a combination of manipulation and greed. Some individuals are lured with promises of financial gains or commissions for services rendered, while others are motivated by trust or solicited via online scams. For example, a money mule may be an agent or victim. Some people even fall prey to romantic relationships where the other party asks for help. Scammers reach out to vulnerable individuals through emails, chat rooms, job offering sites, or blogs, convincing the target to get involved. The money mules are recruited in the following ways:

• Job Scams : Criminals contact job seekers, offering them positions even though they have never applied for the job.
• Romance Scam : A herder, often impersonating as a female, connects with a mule through social media or a dating platform, trapping them with romantic chats.
• Investment Scams : A recruiter sends messages about big returns or get-rich-quick schemes, luring the individual into their trap.
• Impersonation Scam : A herder calls or messages a target, pretending to be from a courier company, government agency, or bank, asking for personal or banking details. A vulnerable person provides all their personal information to avoid inconvenience, thus falling prey to the scammers.

The scammers manipulate people into making payments under the pretext of fake promises or impersonation. Once funds are received, fraudsters advise mules to break down large sums received in their accounts into smaller transactions, as smaller amounts attract less scrutiny. This method of breaking down large sums into smaller ones is called“smurfing.” Mules are directed to transfer these smaller sums into different financial systems like cryptocurrencies, prepaid cards, etc. Once the mule transfers the funds, the money is further split up and transferred through multiple currencies and financial institutions until it reaches a fraudster via a shell company. By involving multiple currencies and financial institutions, the process of layering complicates the money trail and shields the fraudsters behind several layers of transactions.

The easiest way to avoid a money mule scam is by not interacting with unknown people online. Be suspicious of anyone who wants to use your bank account for inflows and outflows of funds. Similarly, never give your financial information to anyone you don't know or trust. If you are seeking a job, make sure to thoroughly research and verify the legitimacy of the company offering the position before accepting the offer. Never accept a job that requires your bank account to carry out transactions on behalf of your employer. If you suspect you have been used as a mule, cease all communications and report it to your bank and the authorities.

Money mules are not often caught, but the risk of getting caught is increasing every day as authorities deploy AI-based anti-fraud technology, such as MuleHunter. Many times, mules are caught due to their suspicious activity. If a person is convicted of being a money mule, they will face punishment as well as penalties. A mule may still be found complicit in a money laundering scheme even if they weren't aware of how their bank account was being used. Serving as a money mule can also damage your credit and financial strength. Unfortunately, a mule risks having their own personal information stolen and used by the criminals they are working for, and they may be held liable for repaying the money lost by the victims.

The Reserve Bank Innovation Hub (RBIH), a subsidiary of the apex bank, has introduced an innovative artificial intelligence-based model called“MuleHunter” to identify suspected mule accounts. MuleHunter will detect fraudulent transactions by analyzing transaction patterns in real time, allowing banks and financial institutions to promptly detect and respond to suspicious activities.

• The author can be reached for feedback at: [email protected]

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