How do drop services work

Drop services are part of the criminal infrastructure that is used to legalize or launder money obtained illegally, including carding, fraud and other types of financial crimes. The main goal of drop services is to provide anonymity and protection for criminals who want to hide the origin of stolen funds. Let's take a closer look at how drop services work, their functions and risks.

1. What is a drop service?​

A drop service is an organization or group of people who provide their bank accounts, e-wallets or other financial instruments for the reception and cashing out of illegally obtained money. This money can be transferred to the accounts of "drops" (money mules) through various methods, such as transfers, online payments or cryptocurrencies.

1.1 Who are the "drops"?​

• "Money mules" are people who provide their accounts for temporary storage or transfer of stolen funds.
• They can act:
  • Deliberately (knowing about one's role in the criminal scheme).
  • Unconsciously (for example, under the pretext of work or helping others).

2. How do drop services work?​

2.1. Stages of drop services operation​

1. Receiving money:
   • The stolen funds are transferred to the accounts of the "drops".
   • Various methods are used to minimize risks:
     • Splitting amounts into smaller transactions.
     • Using cryptocurrencies or anonymous payment systems.
2. Cashing out funds:
   • Money is withdrawn through ATMs or transferred to other accounts.
   • Sometimes physical cards issued in the name of "drops" are used.
3. Transferring money to the organizers:
   • After cashing out, the funds are transferred to the organizers of the scheme:
     • Through couriers.
     • In cash.
     • Through cryptocurrency wallets.
4. Money Laundering:
   • Money is integrated into legal financial flows:
     • Through fictitious companies.
     • Purchase of goods or services.
     • Conversion to cryptocurrencies.

3. Methods of using drop services​

3.1. Carding​

• Drop services are often used to cash out money received through carding:
  • Stolen card data is used for purchases or transfers.
  • "Drops" receive money into their accounts and withdraw it.

3.2. Phishing​

• Fraudsters using phishing schemes also rely on drop services:
  • Victims transfer money to the accounts of "drops".
  • The money is then transferred to the organizers.

3.3. Cryptocurrencies​

• Drop services can be used to convert stolen funds into cryptocurrencies:
  • Exchange through anonymous exchangers.
  • Using mixing services (mixers).

3.4. Sale of goods​

• "Drops" can act as intermediaries in the sale of goods:
  • Goods are purchased with stolen money.
  • "Drops" deliver goods to customers.

4. Risks for "drops"​

4.1. Legal liability​

• "Drops" bear criminal liability for participation in a criminal scheme:
  • Arrests and prison terms.
  • Fines and confiscation of property.

4.2. Betrayal​

• The scheme's organizers can use "drops" as consumables:
  • Not paying the promised reward.
  • Hand them over to law enforcement.

4.3. Tracking​

• Banks and law enforcement agencies are actively monitoring suspicious transactions:
  • Freezing of accounts.
  • Investigations against "drops".

5. How do law enforcement agencies fight against drop services?​

5.1. Transaction Monitoring​

• Banks and payment systems analyze suspicious transactions:
  • Large amounts in new accounts.
  • Frequent transfers between different accounts.

5.2. Identification of "drops"​

• Law enforcement officers are identifying people associated with drop services:
  • Analysis of account holder data.
  • Surveillance of suspects.

5.3. International cooperation​

• Coordination of efforts between countries to identify and close down drop services.

6. Alternative: legal ways to earn money​

If you are considering participating in drop services, it is important to understand that this is an illegal activity with serious consequences. It is better to choose legal ways to earn money:

• Work in the field of IT or cybersecurity.
• Financial services or consulting.
• Starting your own business.

7. Conclusion​

Drop services play a key role in the criminal infrastructure, helping criminals hide the origin of stolen funds. However, participation in such schemes is associated with high risks, including legal liability and moral conflicts.

The main conclusion: Participation in drop services is an illegal activity that can lead to serious consequences. The best way to avoid problems is to use your skills for legal purposes and avoid any form of cooperation with criminal structures.

Drop services are illegal schemes involving the use of front men (drops) to cash out or transfer money obtained through criminal means. They are actively used in fraudulent transactions, but their activities are strictly prohibited by law.

How do drop services work? (Just to understand the protection mechanisms!)​

1. Who are the "drops"?​

These are people who consciously or unknowingly provide their details (bank cards, accounts, e-wallets) for:

• Cashing out stolen funds.
• Transfers of fraudulent money.
• Receiving goods purchased with stolen cards.

Often the following become drops:

• Students, unemployed (looking for “easy money”).
• Victims of phishing (they are tricked into giving up data).
• Drug addicts or debtors (selling their data for money).

2. How do the schemes work?​

• Stage 1: Criminals find droppers (through social networks, forums, Telegram channels).
• Stage 2: They are offered “work” – receiving money/transfers and withdrawing them (for a percentage).
• Stage 3: The stolen funds are passed through their accounts to cover their tracks.
• Step 4: Money is cashed out or transferred in cryptocurrency.

3. Technical methods​

• Fake documents – issuing cards to fictitious persons.
• Drop cards are one-time use cards for cash withdrawal.
• Multi-accounting is the creation of multiple wallets to obscure your tracks.

What does this mean for drops?​

• Criminal liability (complicity in fraud, money laundering).
• Blocking of accounts and inclusion in bank blacklists.
• Claims from victims of fraudsters (you will have to return what was stolen).

How does the state fight against drop services?​

• Transaction analysis (banks block suspicious transfers).
• Law on personal data (tightening checks when opening accounts).
• Cyberpolice (investigation of Telegram channels and darknet platforms).

Legal Alternatives​

If you are interested in finances and security, you can work against such schemes:

1. AML analyst (identification of suspicious transactions).
2. Cyber investigator (work in the Ministry of Internal Affairs or FinTech companies).
3. Financial security lawyer (assistance in returning stolen funds).

Where to study?

• Courses: ACAMS, CFT (Combatting Financial Crime) .
• Practice: Internships in banks (fraud monitoring department) .

Conclusion: Drop services are not earnings, but complicity in a crime . It is much safer and more profitable to build a career in financial security or IT.

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