What is a money mule?

February 2025 - 5 minutes' read

What's in this article

• What is a money mule
• Types of money mules
• Spotting tactics used by criminals

A money mule is someone who, either knowingly or unknowingly, receives money obtained through illegal or criminal activities and moves the funds to another account. It is a common tactic used by scammers and criminal organisations to avoid detection and hide from law enforcement.
 

Examples of mule accounts could be:

• Accounts owned by a person, who are unaware their transactions are involved in a scam, fraud or other criminal activity
• Accounts created with stolen identification documents
• The scammer’s actual accounts, although this is quite rare.
   

A money mule may transfer funds as part of a scam and/or fraud, through various means. This may include bank accounts or digital currencies. Funds are sent to other accounts to conceal the origin and/or destination of the transactions.

Funds can be moved in different values or methods, such as withdrawing cash at an ATM, which can make it more difficult for authorities to trace.

Types of money mules

Known involvement

Some people are aware they are participating in activity that is consistent with a money mule. They receive funds into their bank account knowing the funds were obtained through criminal activity.

Unknown involvement

There are some people who have been misled into receiving stolen funds. For example, a romance scammer may request to put their “salary” into your account, providing a number of reasons why their bank can’t receive the payment, and then ask you to move it on.

Those who are looking for jobs or additional income may accidentally become involved in muling by applying for jobs that offer a commission for someone else to use their account. 

International students may also be targeted through ads that promise easy money for transferring money to other people through their bank account. When leaving Australia after studying or working in the country, some students may be asked to provide their banking details for another person to use.

Using money mules appeals to criminals in hopes the transfer of stolen funds is undetected, as genuine activity is also being performed in the account. If the activity is detected by the bank, the scammer may provide the account owner a fictitious story to pass on to the bank.

Common tactics used to recruit money mules

1. Romance or relationship scams

Romance scammers often gain access to banking accounts by developing trusting relationships. Individuals may believe they’re speaking with a romantic partner, friend, or even a relative who is asking for banking credentials or to receive money on their behalf.

2. Investment scams

Individuals who believe they are investing with a company may receive a “return” to encourage  reinvesting more money. The payment is likely to be money from criminal activities and when they send more money to invest, it’s going to the scammer.

3. Job scams

People involved in a job scam may receive payments after accepting a job opportunity and then are repeatedly urged to invest their money into the business for a higher return.

4. Impersonation scams

Scammers can and will take various identities. They can pretend to help those who have previously lost money to a scam they previously conducted, with criminals posing as a “recovery agency”.

Tips to protect yourself

• Never accept funds or provide your banking information to someone you’ve met online or who claims they can’t receive money because they can’t access their account or they are overseas
• Be alert to job offerings from someone who has reached out through social media, especially if you don’t know them personally
• Avoid companies or businesses claiming they need your help in recovering lost money from fraud or scams
• Watch out for any warning signs that your identity may have been used to open a bank account. For example, if you receive debit cards in the mail or other forms of unauthorised communication from a bank or financial institution.