Money mules are the middlemen who inadvertently (or knowingly) help cons hide stolen or illegally gotten funds from the authorities. By posing as romantic love interests, posting vague courier jobs, or asking employees to shift money from account to account, they get innocents to do their dirty work. The first lesson in spotting a mule trap? If a job promises little work for a solid return, run.
In slang, a "mule" often refers to someone who smuggles illegal drugs for a dealer. But there’s another type: the “money mule.”
These individuals—whether knowingly or unwittingly—help criminals transfer stolen funds from one place to another.
The goal? To turn the money trail that stems from victim to perpetrator into a maze. The more obscure the path, the harder it is for authorities to recover funds and prosecute the criminals.
While participating in such activities is illegal, fraudsters have become so skilled at masking their schemes that innocent people often get pulled into money muling without a clue.
How money mule scams work
Scammers persuade innocent people to move money for them in myriad ways. Most often, the cons operate online and connect with would-be mules via direct emails, ads, social media posts and messages, job and networking websites, and dating apps.
According to the Federal Bureau of Investigation (FBI), the money that mules transfer—or launder—often comes from activities like drug or sex trafficking or online scams. In some cases, criminals may even entice mules with the promise of keeping a portion of the funds they move. These criminals might also:
Pose as a romantic interest who needs help getting funds transferred
Place an ad for a job that entails opening and closing accounts to channel money to various endpoints
Spin a sob story about needing help getting dollars from one place to another
Offer a private loan contingent on the mule’s help
Persuade others to invest their money in a “private deal”
What does a money mule driver typically demand?
Once scammers convince a mule to move money, the rest of the scheme unfolds.
Mule drivers might ask you to open a new bank account or provide access to your existing accounts so they can deposit money, which they’ll then instruct you to transfer elsewhere.
They might wire you funds and ask you to purchase a gift card, then share the card numbers and PIN with them.
In some cases, they’ll have you pick up and forward packages containing cash, gift cards, or similar items. Alternatively, they might direct you to use the money they send to purchase cryptocurrency.
After you’ve completed the first few favors or assignments, the cons will see how far they can push you. Beyond having you act as a mule for them, they might also want access to your own accounts to drain them.
Anyone may be targeted to become a money mule. In fact, in 2023, British bank Barclays reported a 23 percent increase in money mule schemes aimed at students. According to their findings, two in five money mules were under the age of 25.
That's one reason why it's important to be cautious if a job promises quick cash, little effort, and high returns. Similarly, if a job posting is vague about responsibilities or describes duties resembling those of a private courier or messenger service, approach with suspicion.
Money mule scams by the numbers
In 2024, the U.S. Department of Justice completed their annual Money Mule Initiative, an ongoing campaign aimed at identifying, disrupting, and prosecuting networks that facilitate the movement of funds from fraud victims to international criminals. Here’s what the initiative uncovered last year:
2,970: The number of warning letters U.S. agencies served to money mules in 2024.
$7 million: The sum that college student couriers (mules) deposited between 2020 and 2023 into the accounts of three eastern Missouri men caught by the feds.
$4.5 million: The amount laundered by two money mule drivers in Western North Carolina. They conducted business schemes over email and swindled elderly victims via romance scams.
What to do if you were an accidental mule
Even the most cautious individuals can fall victim to skilled scammers. Money mule operators are experts at manipulation—after all, they rely on their ability to deceive others to carry out their schemes.
If you’re an Allstate Identity Protection member and you suspect you’ve acted as a money mule—knowingly or unknowingly—reach out to our specialists. They’ll help you untangle the situation and shore up your security. If you’re not a member, follow these directives immediately:
Cut off all communication with the scammer.
Report the situation to local authorities, the Federal Trade Commission, the Better Business Bureau, the FBI's Internet Complaint Center, and state and federal district attorneys.
Alert the platform (email host, social media app, etc.) where you first connected with the fraudster.
Tell the appropriate financial institution, crypto company, gift card company, and so on what occurred.
Close out any financial accounts and cancel any cards that the con got access to.
Place a credit freeze and a fraud alert on your name.
