SHEIKH NISSAR
Haste to be rich is a great danger. It tempts a man to think of a short cut. A shortcut in the form of an opportunity or a scam. The tendency to opt a short cut is based on the content you consume or the people you live with. In reality, shortcuts usually lead to disappointments and may land you in a trouble too big for you. Yes, everyone aims to make money in easiest and fastest way possible, but the advises he find on social media tempts him to follow licentious way. Shortcuts to making millions is a fairy tale untrue to all worlds. The best financial shortcut is to understand there is no fancy shortcut.
The shift of banking to digital channels marked an epidemic of scams. From stealing a modest sum few years ago to a member of a well-established network to execute major frauds, the scammers are using men as well as technology to cheat people. Investigators revealed that scammer used never-seen-before capacities of artificial intelligence to dupe people, thus shaking public trust in institutions. In order to avoid detection and conceal origin of their illicit funds, criminals took aid of sophisticated methods to spread stolen monies across huge array of digital wallets and bank accounts, making it almost impossible for law enforcement to trace the origin of funds. Once the funds are received from victim’s accounts, the scammers transfer illicit funds in an individual’s account to make cascade of fund transfers, making transaction appear legitimate. They exploit the bank accounts of vulnerable individuals by offering small sums of money or commission to acquire access to these accounts and use them as a conduit for transferring the stolen money. Hence, a Money Mule is born.
A money mule is a person who knowingly or, in certain cases, unknowingly help criminals to launder their illicit or stolen monies, by providing his own account or digital wallet to help receive or transfer funds. There are three types of money mules: unwitting or unknowing, witting and complicit. An “unwitting money mule” is a person who is unintentionally part of a larger scheme of money laundering. Similarly, a “witting money mule” is the one who is part of the illicit trafficking of funds willfully blind or ignores obvious red flags. And, a “complicit money mule” is intentionally involved in movement of illicit profits and is aware of his role. The account used by criminals/fraudsters to launder illicit funds are called mule accounts. Those controlling the network are commonly referred as money mule “herders” or “controllers” or “recruiters”.
How are money mules recruited? The money mule recruitment is amalgam of manipulation and greed. Some individuals are lured with a promise of financial gains or commissions for the service rendered while others are motivated by trust or are solicited via online scams, i.e., a money mule may an agent or victim. Some fall prey of the romantic relationship who is asking for help. The scammers reach out vulnerable individuals via emails, chatrooms, job offering sites or blogs, convincing the target to get engaged. The money mules are engaged by following ways:
Job Scams: Criminals contact a job seeker, contact him and offer job, although he has not applied for the position he has been offered.
Romance Scam: A herder, especially a female or impersonating as a female is in hunt, she connects a mule via social media or dating platform. Hence traps a mule by romantic chat.
Invest scams: A recruiter sends messages of big returns or get-rich-quick schemes, which lures an individual.
Impersonation scam: A herder calls or messages a target pretending to be from a courier company or a government agency or bank, asking for personal/bank details. A vulnerable person provides all personal information in order to avoid foreseen inconvenience, thereby falling prey of the scammers.
The scammers manipulate people into making payment on pretext of fake promises, impersonation, etc. When funds are received, fraudsters advise mules to breakdown large sums received in their accounts into smaller, as smaller transaction attract less scrutiny. The method of breaking down large sums into smaller is called smurfing. Mules are directed to transfer these smaller sums into different financial systems like cryptocurrencies, prepaid cards, etc. Once mule transfers funds, the money is further split up again and again and transferred through multiple currencies and financial institutes, till it reaches a fraudster via a shell company. By involving multiple currencies and financial institutes, the process of layering complicates money trail and shields the fraudsters behind several layers of transactions.
How to avoid to be money mule? The easiest way to avoid money mule scam is by not interacting with unknown people online. Be suspicious to anyone who wants to use your bank account for inflow and outflow of funds. Similarly, never give your financial information to anyone you don’t know or trust. If you are in pursuit of a job, before accepting the offer, properly search and verify the legitimacy of the company offering the job. Don’t accept the job that requires your bank account to carry out transactions of your employer. If you suspect you have been used as mule, cease all communications and report to your bank and authorities.
Money mules are not often caught, but the risk of being caught is increasing day by day as the authorities are deploying AI based anti-fraud technology like MuleHunter.ai. Many times, mules are caught by their suspicious activity. If a person is convicted to be money mule, shall face punishment as well as penalties. A mule still be found complicit as a part of money laundering scheme even if he weren’t aware of how his bank account was used. Serving as a money mule also damages credit and financial strength. Unfortunately, a mule risks his own personal information stolen and used by criminals he is working for, and may be held liable for repaying money lost by the victims.
Reserve Bank Innovation Hub (RBIH), a subsidiary of the apex bank has introduced an innovative artificial intelligence-based model called the “MuleHunter.ai” to identify the suspected mule accounts. The MuleHunter.ai will detect fraudulent transaction by analyzing transaction pattern in real time, allowing banks and financial institutions to detect and respond to suspicious activities promptly.
Sheikh Nissar can be reached at shykh.nissar@outlook.com