Money Mules Research Articles

How Banks Can Detect Illicit Funds of Individuals Who Are Unknowingly Recruited As Money Mules

PURPOSE – This paper aims to help build awareness with financial institutions about the money laundering risks posed by individuals who have been unknowingly recruited as money rules and the measures that financial institutions can adopt to detect illicit funds which are being received into the bank accounts of low risk or medium risk customers who are unknowingly recruited as “Money Mules. DESIGN/METHODOLOGY/APPROACH – This paper relies mainly on primary and secondary data drawn from the public domain. It also relies on documentary research.FINDINGS – This paper determined that financial institutions may be able to prevent proceeds of crime from being laundered by individuals who have been unknowingly recruited as Money Mules if they focus monitoring resources on clients who are more likely to be used as Money Mules by criminal networks and organizations; Pay very close attention to the country of origin where the funds emanate from; Pay very close attention to the country where the funds are being transferred to; and Pay close attention to customers who make use of the wealth management services of the bank.ORIGINALITY/VALUE – While most Articles focus on the money laundering risk(s) associated with Money Mules and the measures that individuals can employ to ensure that their bank accounts are not used by criminals to launder illicit funds, this paper focuses on the different mechanisms that banks can employ to detect illicit funds which are being received into the bank accounts of low risk or medium risk customers who are unknowingly recruited as “Money Mules.

≪Дропы≫ — инструмент организации и исполнения контрабанды подконтрольных психоактивных веществ с использованием современных телекоммуникационных ресурсов

≪Дропы≫ — инструмент организации и исполнения контрабанды подконтрольных психоактивных веществ с использованием современных телекоммуникационных ресурсов

Banking malware and the laundering of its profits

Banking malware is malicious software that aims to steal money from victims via manipulated bank transfers in online banking. This paper describes how the profits of banking malware are generated and subsequently laundered, with a particular focus on the use of bitcoins and other digital payment methods. Computers are infected with banking malware via phishing emails, in which people are persuaded in various ways to click on links or open attachments, or via exploit kits, programs that try to find weak spots in the security of computer systems. After infection, bank transfers of the online banking accounts of victims are manipulated via fake website screens (web injects). Behind the screens the amounts and beneficiaries of transactions are modified, emptying the victims’ bank accounts. In the next step, the banking malware profits are laundered. In this paper we describe two models that are used in particular (next to more traditional money laundering methods). The first model involves the use of money mules and a quick cash-out. The second model focuses on direct spending via (a) direct purchases of products via online shopping, (b) direct purchases of bitcoins via Bitcoin exchanges or (c) direct purchases of luxury goods. Bitcoins can be further laundered via so-called mixing services. All in all, these methods allow criminals to launder profits in relative anonymity and prevent seizure of the illegal profits.

Banking Malware and the Laundering of Its Profits

Banking malware is malicious software that aims to steal money from victims via manipulated bank transfers in online banking. This paper describes how the profits of banking malware are generated and subsequently laundered, with a particular focus on the use of bitcoins and other digital payment methods. Computers are infected with banking malware via phishing emails, in which people are persuaded in various ways to click on links or open attachments, or via exploit kits, programs that try to find weak spots in the security of computer systems. After infection, bank transfers of the online banking accounts of victims are manipulated via fake website screens (web injects). Behind the screens the amounts and beneficiaries of transactions are modified, emptying the victims’ bank accounts. In the next step, the banking malware profits are laundered. In this paper we describe two models that are used in particular (next to more traditional money laundering methods). The first model involves the use of money mules and a quick cash-out. The second model focuses on direct spending via (a) direct purchases of products via online shopping, (b) direct purchases of bitcoins via Bitcoin exchanges or (c) direct purchases of luxury goods. Bitcoins can be further laundered via so-called mixing services. All in all, these methods allow criminals to launder profits in relative anonymity and prevent seizure of the illegal profits.

Cyber Criminal Networks and Money Mules: An Analysis of Low-Tech and High-Tech Fraud Attacks in the Netherlands

IntroductionMoney mules can be seen as a crucial part of the criminal network. They are of great importance for the core members of these networks because money mules are used to interrupt the trail that may lead law enforcement agencies to the top of the network. Money mules, for example, register bank accounts or businesses under their names, which are actually exploited by the criminal network.Several studies acknowledge the important role of money mules in the diversion of money stolen by cyber criminals who are engaged in financial cyber crimes, such as carding3 or phishing4 attacks (Choo, 2008; Moore & Clayton, 2009; McCombie, 2011;Aston et al., 2009; Soudijn & Zegers, 2012; Leukfeldt, 2014; Leukfeldt et al., 2016b, 2016c). Most of these studies, however, concentrate primarily on the core group of the criminal networks and only focus indirectly on money mules. Empirical studies into characteristics of internet money mules are lacking. Only Aston et al. and McCombie carried out some exploratory analyses of money mules used in Australian phishing attacks.In order to fill this knowledge gap, this paper focuses on money mules who are used by cyber criminal groups that carry out attacks on financial institutions. To gain insight into this group of criminals, which we believe plays a vital role in the crime process; we analyzed unique data from a fraud registration system of a major Dutch bank. We obtained 600 fraud incidents from the period 2011-2013. Based on these data, this paper provides insight into the characteristics of money mules and the way in which this group is used by criminal networks to transfer money from victim bank accounts. More specifically, we present background characteristics, the socioeconomic status of money mules, and the value and number of transactions to money mules.Review of LiteratureThe present study advances the work of Leukfeldt et al. (2016a, 2016b, 2016c). These studies provide insight into the composition, origin and growth, and criminal capabilities of criminal networks carrying out financial cyber crimes. Forty cyber criminal networks were analyzed in the Netherlands, Germany, UK and the US. The Dutch cases provided the authors with information about cyber criminal networks and their members largely as a result of investigative methods such as wiretaps, IP taps, observations, undercover policing and house searches. The authors reviewed the financial cyber crime cases systematically using an analytical framework. In the other three countries, the authors relied on interviews with case officers and public prosecutors involved in the criminal investigations against cyber criminal networks since no police files were available to them. This section briefly describes the main results of these three studies.Criminal CapabilitiesAll networks that were analyzed by Leukfeldt et al. are involved in attacks on online banking. The crime scripts of the Dutch networks have many similarities. Step one is obtaining login credentials from victims. Cyber criminals use phishing e-mails, phishing websites and malware to intercept these credentials. However, in order to transfer money from the account of the victims, so-called 'one-time transaction authentication codes' are needed. Hence, step two is obtaining these codes. Various methods are used to obtain these codes. In some cases, the criminals posed as bank employees and made telephone calls to the victims. In other cases, malware adapted the transaction that victims made without them knowing or being able to see it. Step three is related to the topic of the present study, i.e., transferring money to money mule accounts. Money from victims' accounts is not transferred to the accounts of core members directly. Rather, in order to obscure the trail to the core members, money mule bank accounts are used.5 Once money is transferred to the money mule account, the money is taken out in cash as fast as possible and via various links given to the core members. …

Cybercrime as a service: a very modern business

Cybercrime has continued to evolve and today it exists in a highly organised form. It has itself become big business, and as with all emerging markets, the suppliers and vendors that serve the cybercrime market have expanded their offer to encompass a range of activities. Cybercrime has evolved into a complex, highly organised hierarchy involving leaders, engineers, infantry, and hired money mules and a worrying new phrase has entered the lexicon of cybercrime – Crime as a Service (CaaS). Derek Manky of FortiGuard Labs examines how the cybercrime world has matured into big business. In any discussion on cybercrime and its evolution it's worth briefly reminding ourselves of its history. Of course cybercrime is nothing new. Since the earliest days of the computerisation of phone systems, people probed and sought ways of manipulating those systems for personal benefit – albeit only for the reward of free calls. As computerisation increasingly integrated into more areas of life, cybercrime developed in parallel, driven by those prepared to put in the hours into cracking the system.

Money Mules: An Investigative View

Money mules are individuals unwittingly hired by organized criminals to perform international wire fraud and other illicit operations. It's their job to help move money around under the title of “account manager,” “client manager,” and other creative titles. Mules don't often realize they are part of an international fraud ring. It's bigger than you think, moving millions of dollars annually to overseas accounts in Russia and other global locations. This investigative report looks into the world of money mules and how they operate.

Money Mules: An Investigative View

Money mules are individuals unwittingly hired by organized criminals to perform international wire fraud and other illicit operations. It's their job to help move money around under the title of “account manager,” “client manager,” and other creative titles. Mules don't often realize they are part of an international fraud ring. It's bigger than you think, moving millions of dollars annually to overseas accounts in Russia and other global locations. This investigative report looks into the world of money mules and how they operate.

Cybercrime En Witwassen: Bitcoins, Online Dienstverleners En Andere Witwasmethoden Bij Banking Malware En Ransomware (Cybercrime and Money Laundering: Bitcoins, Payment Service Providers and Other Methods of Laundering Banking Malware and Ransomware Profits)

Cybercrime En Witwassen: Bitcoins, Online Dienstverleners En Andere Witwasmethoden Bij Banking Malware En Ransomware (Cybercrime and Money Laundering: Bitcoins, Payment Service Providers and Other Methods of Laundering Banking Malware and Ransomware Profits)