How to Recognize Money Mule Scams

Criminals are looking for victims to funnel funds into their accounts

Deirdre van Dyk,

Updated April 30, 2025

AARP

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En español

Published March 29, 2022

/ Updated April 30, 2025

a mule carrying sacks of cash steps on two smartphones, on a pink background

Photo Collage: AARP (Source: Shutterstock; Getty Images)

Most scams revolve around criminals trying to steal your money. Money mule scammers often aim to do that, too. Their ultimate objective, though, is to turn you into someone who helps them steal from others.

Money mules are people enlisted, often unwittingly, to serve as conduits for illegal gains, receiving scam proceeds from other targets and passing them along to the criminals. By acting as intermediaries, the mules give criminals a cheap way to move money and cover their tracks.

According to a 2024 report by Verfin, part of Nasdaq, an estimated $3.1 trillion in illicit funds flowed through the global financial system funding human trafficking, drug trafficking and terrorism.

You or your loved one may be recruited through an online romance, offered a job or contacted through social media sites such as Instagram.

Some targets believe the cover story and don’t realize that they’re being manipulated into abetting serial fraud. Others may see through the ruse but continue to participate, tempted by monetary gain or fearful of retribution if they cut the criminals off.

But being a money mule can be very costly, whether you know you’re doing it or not. If law enforcement gets wise to the underlying fraud, the criminals may simply vanish, leaving the mules to face consequences that can range from loss of banking privileges and reduced credit scores to prosecution, fines and jail time.

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Warning signs that you may become a money mule

Operators, often members of international criminal rings, recruit mules in a variety of ways:

Online romance. The seeming sweetheart who’s been cultivating your affection and trust since you met on social media or a dating app will take advantage of your kind nature and ask you to send them money to help an ailing mother or for plane tickets to visit you. “They build up this this emotional bond, and they get these victims to a point, … where these scammers can say … ‘I'm having trouble. Can you help me?’ These victims don't think twice,” says Jennifer Pitt, senior fraud prevention analyst with Javelin Strategy & Research.

Job offers for easy money. Sometimes they pose as employers, posting job ads or sending out email and social media messages touting work-at-home gigs as a “finance officer” or “money processing agent.” You’re asked to set up a bank account in your own name, and deposit money and transfer the funds to other people you don’t know. You get to take a small commission from the money you transfer, which makes you an accessory in the law’s eyes.

Tell you you’ve won big in a lottery or sweepstakes. A “lottery official” promises a big sweepstakes jackpot but they need to collect payments for taxes or fees, they’ll press you to receive and send money through bank transfers, gift cards, cryptocurrency or other means. Or they may ask you to send them money from your “winnings”

Ask you to cash a check. You may be asked by someone to do them a favor and cash a check or deposit the check and send them the money. Though it appears the money has been credited to your account, and its safe to pay your “friend,” as soon as the bank discovers the check is fraudulent, the bank will take the money back out of your account.

'Accidentally' overpay you. Another ruse involves people who say they've made a mistake and overpaid you. Then they ask you to refund them the difference. Again, the initial payment you were given was fraudulent, so any money you’ve given the scammer is lost.

Offer an investment. Many investment schemes pretend to be offering big gains by investing in cryptocurrency. They're not increasing your retirement funds, they're stealing your money to use for illicit purposes.

How to protect yourself from this scam

Do your research. If an unfamiliar company that offers you a job, especially if the job description is vague. Any job that asks you to use your own bank account to transfer money or that seems to involve little more than receiving and sending money orders, gift cards or other things of value is not a legitimate business.

Be wary of anyone who asks you to open a new bank account or use an existing one to receive funds. Don’t send them money, and don’t accept money they appear to send you.

Stop communicating with anyone you suspect of trying to utilize you as a conduit for payments.

Save receipts, text messages, emails and voicemails from someone who pressures you to receive and transmit payments or products, so you can pass them along to authorities.

Keep sensitive financial information private. Don't share account numbers, logins and passwords with anyone, especially someone you've never met in person.

If you are concerned about a loved one, see if your loved one will let you be added as a trusted contact. It doesn’t allow you to move money, but it does allow banking officials to contact you if they suspect fraud.

How to report this scam

Talk to local law enforcement and report it to your bank branch manager.

File a report to the FBI’s Internet Crime Complaint Center (IC3.gov), and your state attorney general. Not every complaint leads to enforcement action, but the information can help officials to spot trends and sometimes identify the criminals.

For support and guidance, the trained fraud specialists at the free AARP Fraud Watch Network Helpline, 877 -908-3360, can share information on what to do next and how to avoid future scams. The AARP Fraud Watch Network also offers online group support sessions

This story, originally published in 2022, has been revised and advice from experts has been added.

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Deirdre van Dyk is an AARP associate editor covering Social Security, caregiving, technology and fraud. She previously worked at USA Today and Time, where she covered business, government, sustainability and innovation.

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