Mule Account Scam
Fraudster may approach victims (mule account holder) with lucrative offers in exchange for the victim to ‘lend’, ‘share’ or ‘rent out’ their bank accounts/ cards or help fraudster to receive or transfer fund illegally acquired from/to third parties. Victims can be prosecuted under the law if their account involved in illegal activities even they are not directly involved.
How does it work?
- Fraudster may contact potential victims via emails, chat rooms, websites or social media and persuade them to rent out their bank accounts/ cards or receive unknown fund in their bank accounts in exchange for a reward.
- Once the victims agree to rent out their accounts/ cards, fraudster will conduct illegal activities using such mule accounts e.g. transfer illegal fund into the victims’ bank accounts, perform multiple illegal fund transfers to different mule accounts, use the victims’ cards to withdraw illegal funds or commit fraud using the mule accounts.
- Alternatively, fraudster may instruct victims to perform illegal fund transfer or ATM withdrawals on the fraudster behalf without telling the victims that the whole process involved illegal activities.
- Mule account holder can be charged under Section 424 of the Penal Code for fraudulently concealing monies which carries a sentence of imprisonment up to five years, or a fine, or both upon conviction even if such mule account holder is not directly involved in whatever their “renter” does.
How to prevent from Mule account scam.
- Do not accept lucrative job offers that promise fast return which requires you to disclose your card and/or online banking login and password.
- Do not share your account credential or allow anyone access to your account.
- Do not help anyone to receive or transfer fund from/to third parties. You are violating the law if illegal activities are found and enforcement action may be taken against you.
- Report scam/ fraud to the bank and law enforcement agency if you think you might already be part of a mule account scam.
