Spam Often Offers Money Mule Positions

On October 29, 2009 the FDIC warned banks that the fraudulent work at home scams appear to be increasing. Spam is often the foot in the door for the cybercriminal. The bank's customers receive funds but really don't know its true source. They then end up transferring these funds electronically to overseas contacts. This job has become known as being a "money mule." Banks need to be aware of their customers transactions, watching for these warning signs in an effort to thwart criminal activity and avoid losses.

The FDIC cites these common scenarios:

• Online job posting Web sites are used by criminals to locate individuals seeking employment with flexible work hours that can be performed from home. These work-at-home schemes often involve written employment contracts, job descriptions and procedures to legitimize the scam.
  
• Advance fee scams promising large monetary rewards for acting as a financial intermediary can entice individuals to participate in this activity.
  
• Mystery shopping jobs may be used that require the employee to assess the performance of money service businesses by completing EFTs and then evaluating the service using customer satisfaction forms.
  
• Social networking sites may be used to recruit individuals to act as money mules. Criminals conjure up various imaginative stories to befriend and persuade individuals to receive and forward stolen funds.
  
• Some hesitant or skeptical money mules have been intimidated, harassed and threatened by their criminal "employers" to process the funds transfers quickly and with secrecy.
  
• The personal identifiable information provided by the money mule might later be used to commit identity theft or account takeover.
  

They also cite these examples of events that may indicate money mule account activity:

• A deposit account opened with a minimal deposit soon followed by large EFT deposits.
  
• Deposit customers who suddenly begin receiving and sending EFTs related to new employment, investments, business opportunities or acquaintances (especially opportunities found on the Internet).
  
• A newly opened deposit account with an unusual amount of activity, such as account inquiries, or a large dollar amount or high number of incoming EFTs.
  
• An account that receives incoming EFTs then shortly afterward originates outgoing wire transfers or cash withdrawals approximately eight to ten percent less than the incoming EFTs.
  
• A foreign exchange student with a J-1 Visa and fraudulent passport opening a student account with a high volume of incoming/outgoing EFT activity.