Money Mules: What You Need To Know

Money mule schemes happen every day to ordinary people. Whether you're job hunting, online dating or just scrolling through social media, it’s easier than you think to get caught up in these scams. This guide breaks down exactly what money mules are, how these scams work and how you can protect yourself.

What is a money mule?

A money mule is an individual who knowingly or unknowingly facilitates the movement or hiding of illegally obtained funds on behalf of a third party. This could be a criminal organisation or a lone scammer urging people to move money, whether by bank transfer, cryptocurrency or cash. Some money mules knowingly get involved, aware that the money comes from a shady source and agree to help launder it in exchange for a cut. Others are tricked into participating, believing they’re doing legitimate work or helping someone in need. Approximately 90% of money muling is linked to illegal cybercrime, such as phishing, malware attacks, e-commerce fraud, romance scams and similar activities. 

Money muling is a growing threat in the UK, with an estimated 37,000 bank accounts showing signs of mule activity and around £10 billion laundered annually. Individuals may be groomed by criminal gangs or lone scammers, luring their victims with false promises of easy profit. But the problem doesn’t always end with a simple money transfer and some victims may even experience blackmail. Money muling is a form of financial exploitation, a type of abuse that can have a lasting psychological and financial impact. It can result in life-changing consequences, leaving victims unable to open bank accounts, access loans, keep credit cards or even face criminal charges.

How people become money mules

Victims are often approached by ‘mule herders’ - criminals who specialise in persuading people to move stolen money. These herders typically scour social media, job sites or dating apps to collect personal information about vulnerable targets. They then make contact via messaging apps or may even try to meet in person.

A mule herder’s goal is to gain the victim’s trust. They may pose as someone open to friendship, a romantic interest or an employer and often act extremely friendly to gain the victim’s trust. Once the victim feels comfortable, the herder asks them to transfer money, usually presenting it as a favour, a quick job or a temporary solution.

Here are examples of what mule herders might say:

• “My bank account isn’t working, can I use yours?”
• “I can’t access my bank because I’m travelling – could you help me out?”
• “You’ll get a cut of the profits – all you have to do is send a transfer.”
• “This is part of your new job. It’s just basic payment processing.”
• “Don’t tell anyone, this is confidential - and banks always overreact to things like this.”

In reality, the herder is involving the victim in money laundering. Carrying out one of these requests can make you a criminal and put you at serious risk.

What does money muling look like?

Let’s take a closer look at what may happen during the money muling process. It’s important to note that money mule fraud is a highly coordinated scheme, sometimes involving multiple steps. Once the money mule has been recruited and coerced into participation, the mule is often asked to break the funds into smaller amounts and transfer them to different accounts, sometimes internationally or through alternative payment systems, such as cryptocurrency or prepaid cards.

This step, known as layering, is designed to make the transaction trail as complex and difficult to trace as possible. By introducing multiple layers of movement and involving various financial platforms, criminals distance themselves from the origin of the funds. Mules are often promised a generous share of the funds, but will likely receive very little or nothing at all.

Famous money mule cases

While money mule activity often happens quietly behind the scenes, there are some high-profile cases that demonstrate the devastating scale and potential of money mule schemes. Familiarising yourself with these examples is an excellent means of gaining valuable insight into how individuals, often unknowingly, find themselves participating in financial crimes. 

• The business email compromise mule scheme (BEC): In this scheme, cybercriminals hack into a company’s email system and send fake payment instructions to employees or clients. Scammers impersonate trusted figures, such as senior executives or suppliers, to trick companies into transferring large sums to fraudulent accounts. 
• Student recruitment money mule schemes: In several countries, including the UK, Canada and Australia, students have been targeted by fraudsters posing as recruiters. These students were persuaded to receive and transfer large sums of money under the guise of being lawful, while keeping a small percentage of the sum. International students are particularly vulnerable to this scam, as their international bank accounts are often attractive targets for cross-border cybercrime.
• Romance scam money mule scheme: In these cases, scammers build long-term emotional relationships with victims through dating platforms, social media or messaging apps. After establishing trust, the fraudster invents a reason they can’t access their bank account and need help moving funds for a supposed emergency. The victim is then asked to receive and forward money on the scammer’s behalf. Believing they’re helping someone they care about, the victim agrees and unknowingly becomes a money mule.

Fraudsters tend to prey on naivety, vulnerability and financial need, often enticing their victims with irresistible offers. If you’re tempted to earn extra cash or take a chance on a possible love match, pause and consider the risks. 

Warning signs of money mule schemes 

As social media becomes increasingly integrated into daily life, it’s more important than ever to be aware of the risks posed by cybercriminals operating across various platforms. We recommend vigilance and caution at all times when making new connections. Here are some red flags to watch out for that could indicate you are being targeted by a money mule scheme:

• Someone wants to transfer you money: Does someone you don’t even know want to send money to your account? This is a major red flag. Scammers often claim they need help moving money and ask you to ‘hold’ or ‘transfer’ funds on their behalf.
• The job offer seems too good to be true: Offers that promise high earnings for minimal effort, such as simply transferring money between accounts, are likely a scam.
• You’re asked to use your personal bank account: Beware of new acquaintances or employers who ask you to use your account for transactions.
• You’re told to keep it quiet: Scammers often tell victims to keep the arrangement confidential, warning them not to tell family, friends or bank staff. This secrecy is meant to prevent others from spotting the scam.
• The communication feels rushed or pressuring: Be wary if someone is pushing you to act quickly, especially if they claim it’s a limited-time opportunity. 
• Grammar or spelling mistakes: If the communication is riddled with errors, it’s unlikely to originate from a legitimate source or employer. Poor language is often an easy way of spotting a scam.

As with many cyber scams, if the offer or opportunity seems too good to be true, or feels off in any way, it probably is. Whether it’s a job offer or a potential romantic connection, it could be the start of a money mule scheme designed to gain your trust. Money herders and cyber scammers can be incredibly smooth, persuasive talkers, which is why we recommend always trusting your instincts and taking the time to verify any suspicious requests. Never feel pressured to act immediately or share your personal financial information.

Protecting yourself from money mule schemes

While money mule schemes can sound scary, the good news is that there are plenty of ways you can avoid falling into these traps. Keeping informed on the latest tactics and schemes employed by scammers is a smart step. 

Here are some practical tips to help keep you safe: 

Be sceptical of unsolicited offers: If you receive job offers or requests for financial help out of the blue, take the time to authenticate the legitimacy of the offer.

Research the company or individual: Look up company names, contact information and reviews. If the business or person can’t be verified through reputable sources, it’s best to steer clear.

Ask questions: Don’t be afraid to ask for more information or details.

Keep your financial information private: Don’t share your bank details, passwords or verification codes with anyone, even if they seem trustworthy.

Report suspicious activity immediately: If you suspect you’ve been targeted or unknowingly involved in a money mule scheme, contact your bank and report the incident to the police, Crimestoppers (an anonymous fraud reporting platform), or to Action Fraud, the 24/7 live business fraud reporting website. 

Brushing up on warning signs and staying cautious is an excellent method of defence against financial scams. Protect your reputation and finances by saying no to suspicious requests, and don’t be afraid to ask questions or seek consultation from professionals or those you trust personally. 

The consequences of money muling

Allowing someone to use your bank account for money transfers might seem like it isn’t a big deal, but it's a criminal offence with severe consequences. By moving funds on behalf of another person, you may unknowingly be assisting in money laundering or helping to finance organised crime, including activities like drug trafficking or human exploitation.

Even if you act unknowingly, you can:

• Face a prison sentence of up to 14 years
• Receive a criminal record
• Be denied contracts and credit
• Be dismissed from a university course
• Face bank account closure 

Think before you transfer

Money mule schemes are a growing threat and awareness is key. At MyGuava, we are passionate about promoting open discussions about financial safety. Whether you're approached with a too-good-to-be-true job offer, a request from someone you’ve met online or simply asked to do someone a favour, always stop and think. The short-term gain is never worth the long-term damage - legally, financially and personally. When it comes to money muling, one wrong move could change your life. Don’t take the risk.

We understand that discussions around financial best practices can sometimes feel overwhelming, but we’re here to help and support you. If you’d like to continue the conversation or need guidance, don’t hesitate to reach out to our experts. We’re always ready to provide more information, answer your questions and help you protect yourself and others from money mule schemes.