Money Mule

05.07.2024

Money Mule

Why in the news?

Several high-street banks have either stopped or slowed down opening sole proprietorship and individual current accounts of firms that are less than a year old amid suspicion that they could be 'money mules' for laundering and digital frauds.

About Money Mule:

• A money mule is someone who transfers or moves illegally acquired money on behalf of someone else.
• Criminals recruit money mules to help launder proceeds derived from online scams and frauds or crimes like human trafficking and drug trafficking.
• Money mules add layers of distance between crime victims and criminals, which makes it harder for law enforcement to accurately trace money trails.
• Money mules can move funds in various ways, including through bank accounts, cashier’s checks, virtual currency, prepaid debit cards, or money service businesses.
• Criminals will often use fake job adverts, or create social media posts about opportunities to make money quickly, in order to recruit potential money mules.
• Some money mules know they are supporting criminal enterprises; others are unaware that they are helping criminals’ profit.
• Money mules often receive a commission for their service,or they might provide assistance because they believe they have a trusting relationship with the individual who is asking for help.
• When such frauds are reported, the money mule becomes the target of police investigations.
• Even if money mules are not directly involved in the crimes that generate the money, they are accomplices, as they launder the proceeds of such crimes.

                                                               Source: The Economic times

Ques :- Which one of the following statements best describes the term ‘Money Mule’?

A.Someone who invests money for others

B.Someone who provides loans at high interest rates

C.Someone who transfers or moves illegally acquired money on behalf of someone else

D.Someone who offers financial consulting services

Answer C