Don’t Fall Prey to “Money Mule” Crypto Scams

The Commodity Futures Trading Commission (CFTC) issued a stark warning, including on cryptocurrencies, to students and young job seekers: beware of becoming an unwitting “money mule.”

In a recent advisory, the CFTC’s Office of Customer Education and Outreach (OCEO) warned that criminal organizations are targeting young people with seemingly easy, stay-at-home job offers that involve transferring money through bank accounts or digital wallets.

Although the CFTC warning primarily concerns the “money mule” phenomenon, it also, to a large extent, concerns cryptocurrencies. The agency suggests that their decentralization and anonymity make them frequently used for potentially illegal transactions.

“During this year’s Money Mule Initiative, the U.S. Department of Justice reported that agencies took action against more than 3,000 money mules, including criminal charges against 24 individuals,” the CFTC said in his press release.

According to the CFTC’s description, unwitting individuals are asked to transfer funds between cryptocurrencies or blockchains, helping criminals avoid detection and exposure to legal consequences.

“An estimated $75 billion passed through digital wallets linked to these frauds,” the CFTC noted, citing a University of Texas study. “Law enforcement is getting better at tracking and seizing stolen assets on blockchains, so criminals are motivated to “exit” or convert their tokens to dollars, and can recruit unwitting accomplices to do so. TO DO.”

How Money Mule Scams Work

Job offers often seem simple: open accounts, send or receive funds, convert dollars to cryptoassets, or purchase and deliver goods. In exchange, the “employee” keeps part of the money. However, in reality, transnational criminal networks use these unsuspecting individuals to hide the trail of funds obtained through fraud, human trafficking, drug sales and other crimes.

In addition to fake job offers, the CFTC warns that some may think they are helping an online friend in need, but in reality they are. victims of “pig butchery” – a type of romance or trust scam used to fuel money laundering networks. Common red flags include:

• “Off-ramping”: Conversion of crypto-assets sent to your digital wallet in dollars to send elsewhere
• “On-ramping”: using cash to purchase crypto, often at a Bitcoin ATM, to transfer it to another wallet
• “Smurfing”: receiving a large amount of crypto and sending smaller amounts to multiple wallets

Serious consequences for participants

Even though some money couriers are known accomplices, many are unaware that they are facilitating the crime. But the CFTC emphasizes that participation in money laundering even unintentionally, can lead to criminal charges and destroy confidence in one’s identity.

“Young people looking for summer work may simply be looking for part-time income and might be attracted to offers that require being online for a few hours a day,” said Mélanie Devoe, director of ‘OCEO. “Unfortunately, they could become unwitting accomplices in money laundering or what criminals call ‘money mules,’ and this association could land them in prison.”

The CFTC advises that you immediately stop all communication if you are contacted online to transfer money. If you’ve ever received funds from someone you met online, tell your bank and consider switching accounts. Most importantly, do not transfer the money and alert authorities immediately, including filing reports with the police.

Last month, the CFTC, working with federal prosecutors, took another crypto action. and accused KuCoin and two of its founders in violation of anti-money laundering (AML) regulations. The charges state that KuCoin was operating in the United States without the necessary registrations and did not maintain a sufficient AML program.

The Commodity Futures Trading Commission (CFTC) issued a stark warning, including on cryptocurrencies, to students and young job seekers: beware of becoming an unwitting “money mule.”

In a recent advisory, the CFTC’s Office of Customer Education and Outreach (OCEO) warned that criminal organizations are targeting young people with seemingly easy, stay-at-home job offers that involve transferring money through bank accounts or digital wallets.

Although the CFTC warning primarily concerns the “money mule” phenomenon, it also, to a large extent, concerns cryptocurrencies. The agency suggests that their decentralization and anonymity make them frequently used for potentially illegal transactions.

“During this year’s Money Mule Initiative, the U.S. Department of Justice reported that agencies took action against more than 3,000 money mules, including criminal charges against 24 individuals,” the CFTC said in his press release.

According to the CFTC’s description, unwitting individuals are asked to transfer funds between cryptocurrencies or blockchains, helping criminals avoid detection and exposure to legal consequences.

“An estimated $75 billion passed through digital wallets linked to these frauds,” the CFTC noted, citing a University of Texas study. “Law enforcement is getting better at tracking and seizing stolen assets on blockchains, so criminals are motivated to “exit” or convert their tokens to dollars, and can recruit unwitting accomplices to do so. TO DO.”

How Money Mule Scams Work

Job offers often seem simple: open accounts, send or receive funds, convert dollars to cryptoassets, or buy and deliver goods. In exchange, the “employee” keeps part of the money. However, in reality, transnational criminal networks use these unsuspecting individuals to hide the trail of funds obtained through fraud, human trafficking, drug sales and other crimes.

In addition to fake job offers, the CFTC warns that some may think they are helping an online friend in need, but in reality they are. victims of “pig butchery” – a type of romance or trust scam used to fuel money laundering networks. Common red flags include:

• “Off-ramping”: Conversion of crypto-assets sent to your digital wallet in dollars to send elsewhere
• “On-ramping”: using cash to purchase crypto, often at a Bitcoin ATM, to transfer it to another wallet
• “Smurfing”: receiving a large amount of crypto and sending smaller amounts to multiple wallets

Serious consequences for participants

Even though some money couriers are known accomplices, many are unaware that they are facilitating the crime. But the CFTC emphasizes that participation in money laundering even unintentionally, can lead to criminal charges and destroy confidence in one’s identity.

“Young people looking for summer work may simply be looking for part-time income and might be attracted to offers that require being online for a few hours a day,” said Mélanie Devoe, director of ‘OCEO. “Unfortunately, they could become unwitting accomplices in money laundering or what criminals call ‘money mules,’ and this association could land them in prison.”

The CFTC advises that you immediately stop all communication if you are contacted online to transfer money. If you’ve ever received funds from someone you met online, tell your bank and consider switching accounts. Most importantly, do not transfer the money and alert authorities immediately, including filing reports with the police.

Last month, the CFTC, working with federal prosecutors, took another crypto action. and accused KuCoin and two of its founders in violation of anti-money laundering (AML) regulations. The charges state that KuCoin was operating in the United States without the necessary registrations and did not maintain a sufficient AML program.

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