Money mule scams: How to spot the red flags and help stay safe

Estimated reading time
 4 min

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• What are money mule scams?
• How do money mule scams work?
• How can you protect yourself against money mule scams?
• What can you do if you’ve been involved in a money mule scam?
• Who can you contact if you’ve been involved in a money mule scam?

You’re new at work, keen to help, and your boss asks you to forward a payment they’ve just transferred into your account. Seems harmless - but it could be a money mule scam.

Unfortunately, this is just one of the ways a person can be tricked into becoming a money mule.

“Money mule scams are very prevalent in Australia,” says Khaled Abou Sahyoun, ANZ’s Inbound Fraud Investigations Manager. Some people don’t realise they’re involved - others do, hoping to “make quick money”.

And that’s why we’re going to guide you through how these scams work, how to identify if you’re being targeted, and what to do to keep yourself safe from cybercrime.

What are money mule scams?

Unlike typical cybercrimes, money mule scams don’t always involve stealing your money. Instead, these scams involve money laundering, where the cybercriminal will use you to move funds linked to criminal activity - making the money look legitimate.

Even if it’s not your money, you’re still at risk. Involvement - intentional or not, can lead to identity theft, and even criminal charges. In Australia, money laundering is a serious offence.

How do money mule scams work? 

These scams typically begin with a seemingly innocent interaction, but they can evolve into situations with serious concequences, including potential legal and financial implications. Here are some of the most common ways scammers recruit money mules:

• Fake job offers on social media or job sites: Scammers post fake job ads on platforms like social media or recruitment websites. Once you apply, they may ask you to receive and transfer funds as part of your “job.” Sometimes, they’ll “accidentally” send you a large sum and ask you to forward it to a third-party account.
  
  
• Romance scams that turn financial: In these cases, scammers build trust by pretending to be a romantic partner online. Once they’ve gained your trust, they may ask you to hold or transfer money on their behalf. This is a common way people unknowingly become money mules.
  
  
• Identity theft through data breaches: Cybercriminals may use stolen personal information from a data breach to open bank accounts in your name and move illicit funds – potentially implicating you in financial crime without your knowledge. 

Red flags of a money mule scam

Money mule scams may appear harmless at first, but there are clear warning signs that can help you spot and avoid them. Here are some common red flags to look out for:

• Requests from online romantic interests: If a romantic interest from a dating app or social media asks you to transfer or hold money, it may be a romance scam linked to money laundering.
  
  
• Offers that seem too good to be true: Promises of easy cash for moving large sums through your bank account are classic signs of a money mule scam.
  
  
• Suspicious job offers: Be cautious of job ads offering high pay for little work or vague roles - these could be fronts for illegal money laundering activities.
  

How can you protect yourself against money mule scams? 

Money mule scams, while not as prevalent as some other cybercrimes, carry significant consequences for victims who find themselves caught up in them. Luckily there are some simple ways to keep yourself safe from becoming a target:

• Be sceptical if you’re offered a reward or payment for transferring money on behalf of someone. Always find other means of contacting the person or company they represent to verify the legitimacy of the request.
  
  
• Be wary of job offers that require you to use your own bank account to send and receive funds.
  
  
• Do not let anyone you have met online use your bank account for any transactions or transfers.
  
  
• Do not share your passwords, PINs, one-time passcodes or personal details with anyone online, or over the phone.
  
  
• Keep across all activity in your bank accounts so you can spot any red flags early on.
  

What can you do if you’ve been involved in a money mule scam?

If you have been caught up in a money mule scam, it’s important to take immediate action to keep yourself safe. Because this scam often unknowingly involves the target in criminal activity, your first point of contact should be the police.

• If you have shared financial information or believe you have transferred money to a scammer, notify your bank immediately. If you’re an ANZ customer, please contact us immediately.
  
  
• If you shared credit card details, block or cancel those cards immediately. If your cards are with ANZ, you can do this through the app. Learn more.
  
  
• Report the scam to the platform the scammer used to engage with you, such as social media or a job search website.

Who can you contact if you’ve been involved in a money mule scam?

• Report the scam to the Police through the Australian Signals Directorate’s ReportCyber portal. This resource is there for reports of scams where money or personal information has been lost.
  
  
• You can also contact IDCare, a not-for-profit organisation providing support to those experiencing identity and cyber security concerns.
  
  
• Help others by reporting to Scamwatch to help them prevent future losses, monitor trends and educate the population about emerging threats.