Beware of Money Mule Scams

8/11/2026 - by Wes Duncan - Personal Banking

Red Flags of a Money Mule Scam

Requests from a stranger to deposit or transfer money.
Job postings for ’payment processors’ with the requirement to use your own bank or to open a new account that will be used to transfer the funds.
Unsolicited requests from a stranger for a potential romantic, business or investment relationship where the victim is eventually asked to accept or transfer money.
Sudden notification of a lottery or sweepstake prize winnings.
Pressure to deposit or withdraw funds quickly.
Requests to receive money into a bank account which will be used to purchase cryptocurrency or gift cards, or to transfer the funds to a third party.

¹Federal Bureau of Investigation Internet Crime Report 2025. Internet Crime Compliant Center.

Wes Duncan is Senior Director of Fraud Management at SouthState Bank. He spends his time preventing financial crimes, specifically cyberfraud.

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Beware of Money Mule Scams

The appeal of making money fast through a job offer with no experience required might seem enticing, but it is often how money laundering scams begin, and most people don’t even realize it.

Fraudsters rely on everyday people to move stolen money, often disguising the scheme as a job opportunity, a favor or even a romantic request. Victims are used to transfer illegally obtained funds through their bank account which can likely lead to serious consequences.

What is a Money Mule?

A money mule is someone who transfers stolen money at the request of a stranger to help hide the original source of the funds. Fraudsters use social media platforms to entice victims through a variety of ways including job postings, romantic relationships or sweepstakes.

In some instances, individuals knowingly participate in funneling money because they are looking for an opportunity to make ’fast money’. They agree to allow their bank account to be used to move the funds in exchange for a percentage of the funds as compensation.

These scams frequently involve individuals providing their debit card, PIN, online banking credentials, or other account access information to the fraudster. The fraudster then uses the account to deposit fraudulent checks, often through mobile deposit, and quickly withdraws funds through ATMs, cash transfers, or other channels before the fraud is detected.

Ultimately, the individual may face account closure, financial liability, or criminal consequences if found to have knowingly participated in the scheme.

Common Money Mule Scams

Fake Job Offers – Fraudsters often pose as employers hiring ”payment processors.” Victims are asked to deposit stolen or fraudulent funds into their personal checking accounts, then transfer the money to another account in exchange for a small payment.

Online Romantic Relationships – According to the FBI, in 2025, there was $929 million¹ lost to romance scams. Fraudsters build fake romantic relationships online to gain a victim’s trust and affection, then manipulate them into receiving, sending, or moving money on their behalf.

Prize/Lottery Offers – Victims are contacted on social media or by email or phone in which they are notified they have won a fake lottery or sweepstakes. The fraudster claims that in order to claim the prize, the victim must pay a processing fee. However, instead of paying the fee up front, the fraudster sends the prize money via a check or mobile transfer to the victim. The victim deposits the fraudulent funds into their bank account and is directed to send the fees to a third-party.

Gift Cards – The fraudsters will recruit victims through a variety of fake scams, i.e., job postings, romance, or lottery/sweepstakes. They send the victim funds to be deposited into their bank account. The victim is convinced to withdraw the funds quickly and purchase high-value gift cards. The victim then sends the gift cards or gift card numbers to the fraudsters who redeem the card for merchandise or sells them to other criminals.

Cryptocurrency – Victims may be recruited to open accounts with cryptocurrency exchanges or may be instructed to deposit funds into cryptocurrency kiosks (Bitcoin ATMs). Fraudsters often convince victims that the transaction is related to an investment opportunity, government matter, romance scam, prize winnings, or another legitimate purpose. Criminals will send funds to the victim's account and instruct them to convert the funds into cryptocurrency in exchange for a small payment. Once the cryptocurrency is transferred, the funds are typically difficult to recover due to the anonymous and irreversible nature of blockchain transactions.

Red Flags of a Money Mule Scam

Requests from a stranger to deposit or transfer money.
Job postings for ’payment processors’ with the requirement to use your own bank or to open a new account that will be used to transfer the funds.
Unsolicited requests from a stranger for a potential romantic, business or investment relationship where the victim is eventually asked to accept or transfer money.
Sudden notification of a lottery or sweepstake prize winnings.
Pressure to deposit or withdraw funds quickly.
Requests to receive money into a bank account which will be used to purchase cryptocurrency or gift cards, or to transfer the funds to a third party.

What to Do If You Suspect a Money Mule Scam

End All Contact: Immediately stop all contact with the suspected fraudster.
Contact Your Bank: Let them know as soon as possible. Depending on how you transferred the funds, they may be able to help stop the transaction.
Keep Any Evidence: Save all purchase receipts, text messages, emails, and phone numbers to provide to law enforcement.
Report the Incident: File an official report online at the FBI Internet Crime Compliant Center and contact your local FBI field office.

If you are a money mule, even if you don’t realize you’re money laundering, you are committing a serious crime that can be punishable through legal prosecution and imprisonment. Reviewing the red flags above can help protect your money, credit and financial reputation, and avoid criminal penalties.

¹Federal Bureau of Investigation Internet Crime Report 2025. Internet Crime Compliant Center.

Wes Duncan is Senior Director of Fraud Management at SouthState Bank. He spends his time preventing financial crimes, specifically cyberfraud.

Beware of Money Mule Scams

Red Flags of a Money Mule Scam

Believe You Were A Victim of This Scam?

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