How Drops and Money Mules Work

[chushpan]

Drops and money mules are people who participate in fraudulent schemes by providing their bank accounts, addresses, or personal information to cash out money or receive goods. They play an important role in laundering funds obtained illegally, such as through carding, phishing, or other types of cybercrime. Let's look at how drops and mules work and their role in criminal schemes.

1. What are drops?​

Drops are people who provide their addresses to receive goods, money or other valuables that were purchased or obtained fraudulently.

a) The role of drops​

• Receiving goods: Scammers use stolen cards to purchase goods (e.g. electronics, jewelry) and send them to the drop address.
• Resale: Drops resell goods on the secondary market (for example, through online platforms or social networks) and transfer the proceeds to the organizers of the scheme.
• Covering their tracks: Using drops helps scammers hide their identity, as the goods are delivered to third-party addresses.

b) How do they become drops?​

• Unwitting participation: Some people become drops without realizing it. For example, scammers may use stolen data to provide someone else's address.
• Voluntary Participation: People agree to become drops for a reward without understanding the consequences or knowingly participating in criminal activity.

c) Risks for drops​

• Criminal Liability: Droppers may be held liable for participating in a fraudulent scheme.
• Confiscation of property: Goods obtained by drops may be confiscated by law enforcement.
• Financial losses: Scammers often deceive the drops themselves by not paying the promised reward.

2. What are money mules?​

Money mules are people who move money between accounts or withdraw cash on behalf of fraudsters. They are often used to launder illegally obtained money.

a) The role of money mules​

• Transfers: Mules transfer money from one account to another to hide its origin.
• Cash withdrawal: Mules withdraw money from stolen cards or accounts and hand it over to the scheme organizers.
• Opening Accounts: Some mules open new bank accounts to use for fraudulent transactions.

b) How do you become a mule?​

• Deception: Scammers often recruit mules through fake job offers. For example, they offer "easy work" in exchange for payment for transferring money.
• Economic Need: People in financial distress may agree to such offers without understanding the consequences.
• Organized Crime: In some cases, mules are part of organized crime groups.

c) Risks for mules​

• Criminal liability: Transferring or withdrawing money obtained illegally is a crime.
• Account Blocking: Banks may block mule accounts if suspicious activity is detected.
• Reputational Damage: Participation in such schemes may impact future employment or credit opportunities.

3. How do drop and mule schemes work?​

a) Stages of the scheme​

1. Data acquisition: Fraudsters gain access to stolen cards or accounts through skimming, phishing or database hacking.
2. Using Drops: Scammers send products to drop addresses or ask them to transfer money.
3. Money Laundering: Mules move money through multiple accounts or cash it out to hide the source.
4. Monetization: The proceeds from the sale are given to the organizers of the scheme.

b) Examples of diagrams​

• Online shopping: Carders use stolen cards to purchase goods and send them to drop addresses.
• Mule Transfers: Mules transfer money from stolen accounts to the accounts of the scheme's organizers.
• Cryptocurrencies: Scammers may use mules to buy cryptocurrency and transfer it to anonymous wallets.

4. How to recognize an offer to become a drop or a mule?​

If you are offered a job that involves transferring money, withdrawing cash or receiving goods, be careful. Here are the signs of a fraudulent offer:

• High Pay for Easy Work: Offers that promise quick money for minimal effort.
• Need to provide personal data: Requests to use your bank account or address.
• Lack of clear job description: Vague explanations of what exactly you will be doing.
• Suspicious companies: Employers without a real office, website or references.

5. Legal consequences​

Participating in a mule or drop scheme is a criminal offense. Most countries have severe penalties under their laws, including:

• Imprisonment.
• Large fines.
• Confiscation of property.

6. How to protect yourself?​

If you want to avoid participating in fraudulent schemes:

• Avoid suspicious job offers. Be wary of offers that involve transferring money or using your address.
• Don't give out your details. Never give out your bank details or personal information to unverified persons.
• Check employers. Research the company offering the job and make sure it is legitimate.
• Report suspicious activity. If you notice suspicious transactions or offers, report them to your bank or law enforcement.

7. Conclusion​

Money mules and mules play a key role in scams, but their involvement often comes with serious legal consequences. To avoid problems, it is important to be alert to suspicious job offers and not to participate in questionable financial transactions. If you have been the victim of a scam or suspect you are involved in a criminal scheme, contact law enforcement immediately.

If you have questions about how to protect yourself or recognize scams, I am here to help!

 

[Man]

Who are drops and money mules?​

Money mules and mules are key elements in fraud schemes such as carding, money laundering, or cash-outs. These terms refer to people or resources that are used to receive stolen money or goods in order to hide traces of criminal activity.

1. Drops​

A drop is a person, address, or account that is used to receive stolen funds or goods. The main purpose of drops is to hide the identity of the attackers and complicate the investigation.

How do drops work?​

1. Physical drops:
   • These are the people who receive goods sent to their address.
   • Example: A criminal buys a product with a stolen card and specifies the drop's address. After receiving the product, the drop passes it on to the criminal for a reward.
2. Electronic drops:
   • These are accounts (e.g. e-wallets, bank accounts) that are used to temporarily store stolen funds.
   • Example: Money is transferred to the drop account and then converted into cryptocurrency or transferred to other accounts.
3. Drop address:
   • These are post boxes or pick-up points used to receive parcels.
   • Example: Scammers rent post office boxes under fictitious names to receive goods.

Risks for drops:​

• Drops often do not realize that they are participating in illegal activity.
• If they are identified, they may be subject to criminal prosecution.

2. Money Mules​

A Money Mule is a person who helps transfer or cash out stolen funds. Mules act as "middlemen" between the criminals and the final recipients of the money.

How do money mules work?​

1. Recruiting Mules:
   • Fraudsters often find mules through fake job offers on the Internet.
   • Example: An ad for a "financial manager" who will receive money into his account and transfer it further.
2. Transfer funds:
   • The stolen money is transferred to the mule's account.
   • The mule transfers the funds to another account (e.g. via Western Union, PayPal or cryptocurrencies) or cashes them out.
3. Cashing out:
   • Mules can withdraw cash from cloned cards or receive transfers.
   • Example: A mule withdraws money from a card through an ATM and hands it over to the scammers.
4. Money laundering:
   • Mules can be used to convert stolen funds into legitimate assets (such as purchasing goods or cryptocurrencies).

Types of Money Mules:​

• Unwilling Mules:
  • People who are unaware that they are participating in a scam.
  • Example: A student who agrees to do "easy work" over the Internet.
• Conscious Mules:
  • People who are aware of their role in a criminal scheme, but agree to it for the sake of profit.

Risks for mules:​

• Participation in fraudulent schemes may result in criminal liability.
• Banks may freeze mule accounts and cancel cards.

An example of how drops and mules work​

Scenario: Carding scheme​

1. Map data collection:
   • Attackers obtain card data through skimming, phishing or leaks.
2. Purchase of goods:
   • Products (such as electronics) are ordered using stolen cards and sent to the drop address.
3. Transfer of goods:
   • The drop receives the package and passes it on to the attacker for a reward.
4. Money transfer:
   • The stolen funds are transferred to the money mule's account.
   • The mule transfers the money to another account or cashes it out.
5. Conversion:
   • The money is converted into cryptocurrency or used to purchase valuable assets.

How to deal with drops and mules?​

Measures by banks and law enforcement agencies:​

1. Monitoring suspicious transactions:
   • Banks monitor unusual transfers or cash withdrawals.
2. Customer identification:
   • Using KYC (Know Your Customer) to verify the identity of account holders.
3. Blocking accounts:
   • Accounts associated with fraudulent activity are blocked.
4. User training:
   • Informing about the risks of participating in dubious schemes.

If you have any additional questions about how drops and mules work, please ask!