The U.S. Justice Department, FBI, U.S. Postal Inspection Service (USPIS), and other federal law enforcement agencies have announced the completion of the Money Mule Initiative. This annual campaign aims to identify, disrupt, and criminally prosecute networks of individuals who transmit funds from fraud victims to international fraudsters. The initiative targets a range of fraud schemes that predominantly impact older Americans, such as lottery fraud, romance scams and grandparent scams as well as those that target businesses or government pandemic funds.
This year's initiative resulted in action against over 3,000 money mules involved in facilitating various fraud schemes. The actions ranged from criminal prosecutions intended to punish those knowingly assisting fraudsters to warning letters aimed at advising those who may have been unknowingly recruited by fraudsters. Agencies are also conducting outreach programs to educate the public about how fraudsters use money mules and how to avoid unwittingly assisting in fraud by receiving and transferring money.
Acting Associate Attorney General Benjamin C. Mizer stated, “The Justice Department is committed to using every tool at our disposal to protect Americans from fraud.” He emphasized the importance of disrupting money mule networks, educating consumers about scams, and prosecuting criminals in order to keep money out of the hands of international fraudsters.
Assistant Director Michael Nordwall of the FBI’s Criminal Investigative Division echoed this sentiment: “The FBI and its partners will relentlessly pursue individuals looking to illegally move funds for illicit purposes.” Nordwall stressed the need for prosecuting individuals and networks who knowingly facilitate fraud schemes while educating consumers on the dangers of illicit money mule networks.
Inspector in Charge Eric Shen of USPIS said that "the dismantling of these criminal networks should send a strong message that the U.S. Postal Inspection Service is committed to taking down these criminal networks designed to inflict financial harm." He emphasized their dedication towards public education efforts while enforcing laws that bring money mules and their international puppeteers to justice.
The initiative, coordinated by the Justice Department’s Consumer Protection Branch, FBI, and USPIS, involved several other agencies. These included the Department of Labor Office of Inspector General, Federal Deposit Insurance Corporation Office of Inspector General, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), and IRS Criminal Investigation (IRS-CI).
As part of the initiative, approximately 2,970 warning letters were served to individuals suspected of facilitating fraud schemes. The letters aimed to educate and deter these individuals from unknowingly becoming money mules by outlining the potential consequences of continuing to transmit illegally acquired funds.
More than 20 individuals were criminally charged for knowingly receiving and forwarding victim funds or laundering fraud proceeds. The cases ranged from grandparent scams where couriers collected cash from elderly victims' homes to business email compromise schemes and online romance scams targeting elderly victims.
In addition to prosecution efforts, participating agencies are working to raise public awareness about how fraudsters recruit and use individuals in their operations. For instance, IRS-CI implemented a public awareness campaign warning taxpayers about how fraudsters recruit money mules.
The Justice Department urges consumers to be vigilant for signs that someone is trying to recruit them into receiving and transmitting fraud proceeds. They advise against agreeing to receive money or checks mailed or sent directly into bank accounts on behalf of someone met over the phone or online.
For seniors who have experienced financial fraud, assistance is available through the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This hotline can provide personalized support by assessing victims' needs and identifying relevant next steps.