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guest blog by Jackie Blaesi-Freed,
Blaesi-Freed is an Assistant Director in the
Department of Justice’s Consumer Protection Branch. Today,
the Department of Justice, FBI, U.S. Postal Inspection
Service and five other federal law enforcement
agencies announced
the completion of the fourth annual Money Mule Initiative
enforcement actions.
When fraudsters located overseas try to
swindle U.S. consumers and businesses or steal
pandemic-relief funds, a key component of the fraud often
is a pretense that the fraudster is physically located in
the United States. Whether posing as a fake “lottery
official” claiming that a victim has won a large cash
prize, pretending to be a vendor, or using a stolen identity
to claim unemployment payments, fraudsters know that
potential victims are more likely to bite the fraud hook if
they are asked to send money to a U.S. address or bank
account. Since an overseas perpetrator can’t simply walk
into a U.S. bank and obtain an account, many fraudsters use
U.S.-based individuals to receive and transmit funds. These
individuals are sometimes referred to as “money
mules.”
“Money mules” are people located in the
United States who, at the direction of someone else,
receive stolen funds and forward those funds to others -
often other foreign perpetrators. By providing a U.S.-based
address, company, or bank account, money mules enable
fraudsters to present their victims with a critical
illusion – that they are who they purport to be. Some money
mules know exactly what they have been asked to do by the
fraudster, and understand that, by complying with the
request, they are profiting from fraud. Others, however,
are victims themselves. While we do not know precisely how
much fraud money has passed through mailboxes and bank
accounts belonging to money mules, it is safe to say the
total amount is in the billions.
For the last four years, federal law
enforcement across the country has conducted a campaign
each fall that focuses on disrupting fraudsters’ reliance
on money mules. This year, the seven agencies involved took
action against approximately 4,750 individuals involved in
facilitating fraud. These actions, which ranged from
interviews and warning letters to criminal prosecution,
demonstrate law enforcement’s recognition that not all
individuals realize that their actions fuel fraud, and also
demonstrate law enforcement’s commitment to using every
tool available to us to hamper fraudsters’ efforts.
During this year’s initiative, law
enforcement delivered over 4,650 warning letters. These
letters informed recipients that their actions are
facilitating fraud. We also filed civil cases against
individuals who had previously been warned they were
facilitating fraud, seeking court orders requiring them to
stop their activity. And we brought criminal charges
against individuals who knowingly facilitated a wide range
of fraud schemes.
Nothing would be more disruptive to
fraudsters’ use of money mules, however, than people simply
refusing to participate in the activity. Public education
on this topic is critical, and a range of federal agencies
have materials available to raise awareness about money
mule activity.
Here are the key points to know:
- Many individuals who serve as money
mules are first victims of other scams, including
romance fraud and lottery fraud. Be wary of people you
have met over the phone or online, and don’t agree to
requests to receive money, packages, or other things
of value and forward those items.
- Don’t engage in financial
transactions with strangers, and keep your bank
account information to yourself. People who serve as
money mules often receive payments or packages from
strangers across the country—a fact that should send
off warning bells, as should any request to let
someone else access your bank account or to mail your
debit card to another person. Fraudsters may also ask
money mules to open a cryptocurrency account.
- Some individuals become money mules
after responding to job ads that promise easy money
and involve little more than sending or receiving
packages. Be cautious when considering such
work-at-home opportunities.
If someone realizes that they have become
involved in money mule activity, the first step is to end
communication with the person giving instructions. It can
help to consult with a trusted, well-known friend or family
member. If you have given your bank account details or
other similar information, alert your financial
institution, so that the financial institution can help you
take steps to protect your accounts. Report money mule
activity to law enforcement, such as the FTC, https://reportfraud.ftc.gov/#/?pid=A
, FBI’s IC3, https://www.ic3.gov/
or call the Department of Justice’s Elder Fraud Hotline
at 1-833-372-8311, which can not only help with reporting
the activity but also can provide the assistance of case
managers who are trained to support fraud victims and who
may be able to connect you to resources.
By tackling fraudsters’ reliance on
U.S.-based individuals who serve as money mules through
disruption actions and public education, we can curtail
their ability to inflict harm on consumers, businesses, and
pandemic-relief funds.
For more information and materials, visit:
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