Submitted by nsscadmin on
Recently the Nova Scotia Securities Commission has encountered several individuals that have been deceived into acting as money mules. Acting as a money mule is not only illegal, but also very dangerous as it could lead to criminal charges and potential financial loss.
What is a Money Mule?
A money mule acts as the middleman in a transfer of money that has been generated through illegal or criminal activity. This is commonly referred to as dirty money. The money mule may not be aware they are being used to move this dirty money, but that lack of knowledge does not protect them from any law they may be breaking when moving the illegal funds.
The dirty money is often moved through bank wire transfers, email transfers, or through crypto asset trades or transfers. Mules may be offered payment for their service, and this payment can often be disguised as a payment from a business client, a loan for investment, prize winnings, or other fictional accounts.
If you act as a money mule you can face criminal charges for possessing and/or laundering the proceeds of criminal activity. If the moved money is tied to an investment fraud it can also lead to violations of Nova Scotia Securities laws.
How are money mules recruited?
Criminals looking for money mules use many different recruitment tactics. This can include offering a portion of the fund being transferred as an incentive to get the person to participate. They may often lie about their identity and pose as someone else, including someone sharing job offers, or someone looking to develop an online friendship or romance. The recruiters may also search for people to help “process payments,” “transfer funds,” or reship products for them.
Money mules using Nova Scotia residents
An Alberta resident was recruited into becoming a money mule after creating an account on a fraudulent crypto trading platform. The operators of the platform contacted them and requested that they move invested money through their bank account via e-transfers. The platform offered to pay them a 10% commission for the money transfers. Investors located in Nova Scotia sent e-transfers to the money mule who then transferred the money to the platform where it was used to purchase crypto assets. The platform unexpectedly shut down and the operators disappeared with all the transferred funds, including the commissions they had promised the money mule. The money mule ended up with no money and was used as a pawn to move illegal funds for the fraudsters operating the platform.
How can you protect yourself from becoming a money mule?
If you are ever asked by an online friend or romantic partner to transfer money, you may be the target of a money mule recruiter. To protect yourself from becoming entangled in a money mule operation:
- Never move money on someone else’s behalf if you have never met them in person.
- Do not respond to unsolicited emails, texts, or social media messages that promise quick and easy money for little or no work.
- Be skeptical and ask questions if you are ever asked by an employer, friend, or acquaintance to accept money into your bank account, and then process or transfer that money to someone else.