DISCLAIMER: James M. Walsh is an attorney but he is not YOUR attorney. If you need legal advice, consult with your legal counsel.
Introduction by Angela
I received a copy of another email from a scammer who was targeting an author. They were insisting he pay “$4,800 right away to get this great deal!” But, they wanted him to send the money via wire transfer.
The email included:
The name on the account
That person’s address
Bank name
Account number
Routing number
Before we get into it, let me just remind everybody that legitimate businesses accept credit cards. If you use a credit card, you have a good chance of getting your money back. If you send a bank transfer, you will NEVER get it back. You’re totally screwed.
The author’s situation was similar to the romance scammer I busted last month, who wanted me to send money to someone else, his “manager.” Except, his “manager” then told me to wire money to a completely different person, an individual (not a company). Of course, I did not. Thankfully, the author I referenced above was not victimized because he contacted me before forking over any dough.
I checked on the bank info. shared with me by the author. It was a legit person living in the U.S., and with an American name. Why wasn’t the money going to a business bank account instead? I’m glad you asked!
Overseas scammers lure in victims with not just false romantic words (or promises of publishing fame), but also with promises (guarantees!) of riches (fake investments, bitcoin profits – you name it, they’ve thought of it!). Aside from the “send me money because I’m hungry, in the hospital, my kid is sick, etc.” excuses, there are also those who claim their bank account is frozen, or invent a variety of different ways why they can’t receive or send money at that time. Some even tell victims that they’re mailing them a package of gold bars, cash, etc. (yes, people actually fall for this!) but the victim then has to send thousands via bank transfer to a “shipping company” that appears to be in the U.S. (Those shipping company websites and emails are fake, by the way.)
For money mule victims, they rope in individuals, and tell them, “Give me your bank account info. I’ll have money sent there. You keep 10%, and send the rest to me when I give you my new bank details.” They may not offer you 10% (or anything). However, washing the money through your account is still illegal.
They work the scam it a variety of ways. Here’s the catch:
If they are involved in illegal activities (they ARE!), and if you accept money on their behalf, YOU are a money mule. And, YOU can go to jail for that!
“Ignorance of the law is no excuse” is a legal principle holding that a person who is unaware of a law may not escape liability for violating that law merely by being unaware of its content.
But, what if a bank isn’t involved? What if you’re just buying gift cards for them, scratching off the silver on the back, and sending them the codes? Or, what if you’re mailing cash to them? Funding criminals in that way is illegal, too.
Many articles online tell people that, if you think you’ve become a money mule, block that person, and immediately contact law enforcement. I’m not a lawyer but here’s my advice: CONTACT AN ATTORNEY FIRST!
James M. Walsh, Esq. Weighs In
Money Mules: Legal Consequences
There are three types of money mules or “Smurfers.” Unwitting or unknowing, witting, and complicit. And, under criminal federal and state laws, there are a myriad of charges you may face having participated, knowingly or unknowingly, as a money mule. This could include wire fraud, conspiracy, mail fraud, money laundering, bank fraud, and aggravated identity theft, among others. Prosecutors have a wide range of discretion on whether an individual will be prosecuted, and the extent to which they will be charged. Moving money on behalf of an unknown individual is, in my estimation, a huge red flag. Run and report immediately. If you don’t, incarceration is likely and your ill-gotten gains will be subject to civil forfeiture.
Types of Money Mules, or “Smurfers”
Unwitting or unknowing money mules are unaware they are part of a larger scheme.
- Often solicited via an online romance scheme, job offer, or other scam
- Asked to use their established personal bank account, or open a new account in their true name, to receive money from someone they have never met in person
- May be told to keep a portion of the money they transferred
- Motivated by trust in the actual existence of their romance, job position, or “friendship” with the individual with whom they are corresponding
Witting money mules ignore obvious red flags, or act willfully blind to their money movement activity.
- May have been warned by bank employees they were involved with fraudulent activity
- Opened accounts with multiple banks in their true name
- May have been unwitting at first, but continue communication and participation
- Motivated by financial gain, or an unwillingness to acknowledge their role
Complicit money mules are aware of their role, and actively participate.
- Serially open bank accounts to receive money from a variety of individuals/businesses for criminal reasons
- Advertise their services, including what “services” they offer, and at what prices. This may also include a review and/or rating by other criminal actors on the money mule’s speed and reliability.
- Travel, as directed, to different locations and/or countries to open financial accounts, or to register fraudulent companies
- Operate funnel accounts to receive fraud proceeds from multiple lower-level money mules
- Recruit other money mules
- Motivated by financial gain, or loyalty to a known criminal group
Money mule schemes have become a main staple for unscrupulous foreign predators to hide their identity, and launder cash. You may have been cruelly targeted by a romance (or other) scheme but the consequences of participating can be devastating. Did you know you may also be unknowingly funding human traffickers, and/or terrorists?
Source: United Nations Office on Drugs and Crime
“Between January 2020 and February 2024, 84% of romance and investment scam proceeds were laundered through Tether. By mid-2025, stablecoins accounted for 63% of all illicit on-chain transactions, with $649 billion in fraudulent funds flowing through the ecosystem.” – GovInfoSecurity.com
“The scale of money laundering through mule networks is staggering. In 2023, criminals laundered US$3.1 trillion through the global financial system, according to NASDAQ. The United Nations Office on Drugs and Crime (UNODC) estimates that between 2% and 5% of global GDP is laundered annually, equating to EUR 715 billion – EUR 1.87 trillion (US$739 million – US$1.9 trillion) each year.” – FinTechNews.ch
Federal law enforcement agencies have undertaken initiatives to educate and curb this pervasive fraud that has ensnared many people, including the elderly. But, as Angela has indicated, ignorance of the law is no excuse. Your level of participation will likely dictate if, and to the extent, that your criminal case will be prosecuted.
If you or someone you know is a victim of elder fraud, we encourage you to call the National Elder Fraud Hotline at 833-FRAUD-11 (833-372-8311).
RELATED
- 11 Ways to Know If a “Publisher” or Other Service Provider is an Overseas Scammer
- A List of Publishers and Services That ALL Authors Should AVOID AT ALL COSTS!
- Will Meta (Owner of Facebook & Instagram) FINALLY Get Prosecuted for Profiting from Scam Ads? – by James M. Walsh, Esq.
- FACEBOOK’S FRAUD FIASCO: How Facebook is Profiting From Scam Publishers Targeting YOU on Its Platform – by James M. Walsh, Esq.
- WHEN WILL IT STOP?! Meta (the owner of Facebook and Instagram) Now Accused of Profiting from Human Trafficking! – by James M. Walsh, Esq.
- Episode 1 of the WritersWeeklyPodcast: “In Just $299” – Publishing SCAMS You Need To Avoid!! Part 1
- Episode 2 of the WritersWeeklyPodcast: “In Just $299” – Publishing SCAMS You Need To Avoid!! Part 2
- Episode 7 of the WritersWeeklyPodcast: 9 New and Nasty Scams Targeting Authors
Angela Hoy lives on a mountain in North Georgia. She is the publisher of WritersWeekly.com, the President and CEO of BookLocker.com and AbuzzPress, and the author of 24 books.
Follow Angela: twitter | facebook | linkedin
Angela is the creator of the Original 24-Hour Short Story Contest!
Learn more here: https://24hourshortstorycontest.com/
JAMES M. WALSH, ESQ. is a former Navy JAGC officer and a recipient of the American Bar Association’s coveted LAMP Award for excellence in military legal assistance practice. A rolling stone, J.M. has globetrotted most of his adult life. After the military, J.M. pursued commercial real estate development, leasing, and asset management. He resides in Catania, Sicily. He spent almost twenty years in the Commonwealth of Pennsylvania’s Luzerne, Erie & Lackawanna Counties. His handiwork as an editor and author is interspersed throughout this novel. Leo A. Murray fondly refers to J.M. as his collaborative, literary ‘Coach’ or ‘Lieutenant.’ Agnes claims that he has gypsy in his heart and rabbit in his feet.
James’ thriller, Maximum Impact, written with co-author Leo Murray, was published by Abuzz Press.
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ASK ANGELA!
Several years ago, I answered an ad for a writer. They were going to pay me $5,000 for an amount of work. I gave them my address. The next day, I got an email from the “employer” who said he had made the check out incorrectly, but all I needed to do was to deposit the check and take the difference out. Someone would come to my home and pick up the difference. I smelled a rat, so I told him that if someone showed up at my door, he would be arrested and taken away. Another case of “if it sounds too good to be true, it probably is.” The subject of the articles I would write for him never came up.