The article "What is a money mule and how not to become on" is available on the Forbes Latvia website
We have often heard the saying, "Ignorance of the law is no excuse." The autumn, rainy and chilly times have come, when family, friends, parents and children can spend evenings together playing intellectual games and leisurely chats.
It
is possible that even thanks to the pandemic and the lockdown, this opportunity
has arisen - to talk, for the family to get together and to discuss the
important and significant issues among everyone.
In the age of technology, young people, as well as those who have not acquired the skills to think and evaluate critically, can easily 'run into' the promises of fraudsters both online and when communicating with strangers or telephone fraudsters. This is how people are often involved in financial crime.
It is also important for families to discuss on such unpleasant but important topics, because it can affect the future of the family and also provoke troubles for relatives.
Making money fast and easily always raises the suspicion that something is wrong. There is no job that costs a lot and requires little work.
A Money Mule is a person who receives and forwards illegally obtained money on behalf of others.
This type of transaction can take place both electronically and in cash, for a fee. It is often offered a higher fee for this service if friends are involved, so more "money mules". Publicly available information points to the shocking fact that young people from the age of 16 are involved even. Section 11 of the Criminal Law in Latvia provides that a natural person who has reached the age of 14 by the date of the commission of a criminal offense may be held criminally liable. For this reason, it is important to educate young people and children about the risks of being able to offer tempting deals with fraudulent intentions. People are most often addressed in job advertisements, emails and social networks.
Most often, people are involved in money laundering schemes by being attracted by an offer of high pay, by requesting an intermediary service, or by offering to become an agent or representative for money transfer in foreign companies. Also, tempting offers with the possibility of remote earnings often appear.
Such activities are considered criminal money laundering in criminal law, are illegal and virtually are subject to criminal liability worldwide.
By engaging “money mules”, criminals can use these tools to hide their tracks in other crimes such as online fraud, drug dealing, etc.
Before sending a copy of Your ID card, consider to whom and on what basis You are sending it. Your personal information and copies of Your ID cards can be used in many different ways that You can't even visualize. Let’s imagine, one young man believed in an acquaintance who promised to involve the young man in a cryptocurrency transaction. The acquaintance promised that this person would receive 20 euros for the transaction. But like any deal, it came with its own terms. The condition for this transaction was that the person had to take a photo of his identity card and send it to an acquaintance. The person, of course, trusted an acquaintance and fulfilled the condition - sent a photo with his identity document. Two years later, it became known that fraud had taken place abroad using this person's data, leading to the initiation of five criminal proceedings. Is it really worth risking € 20? There is no easy profit and has never been. The illusion of easy and fast profits can even lead to imprisonment if a person is not aware of such fraudulent transactions, how to critically evaluate and identify them, and what the consequences of engaging in such transactions may be.
To avoid falling into the hands of fraudsters, evaluate all the information You are given when You come across tempting offers and do not believe everything that is said and promised.
Criminals, involving people, may also request large-scale cash transfers, on behalf of another person, for a fee.
In order not to fall victim to fraudsters, the most common signs of possible fraud are promises of easy money; an indication in the announcement of the search for agents; a vacancy announcement that offers high wages for practically not doing any work (without the need for any specialization, work experience, education); the presence of grammatical and spelling errors.
When criminal money transfer chains are discovered, a participant who is an intermediary, for example in Latvia, a naive person who has “caught” on the “hook” of easy money-making is prosecuted. A person who has fallen into the fraudster's pit must also be involved in covering the damage caused to third parties. This results in wasted time, money and loss of reputation.
Among the priorities of the Ministry of Internal Affairs in 2022, it is planned to introduce a cyber police structural unit in the State Police. The police are increasingly faced with a situation where the Internet is used as a tool and a place to commit a crime. As technology advances, so the police also should.
Both the security departments of credit institutions, the Financial Intelligence Service and the State Police have repeatedly warned and paid attention to this issue.
It is not possible to put a police officer next to everyone, so be careful, protect yourself and your loved ones.
Educated and knowledgeable people can also become victims of crime in a sudden, difficult financial situation. Similarly, opening a bank account or setting up a business at the request of a third party and transferring their subsequent management to a third party is also a criminal offense, which is a subject to criminal liability.
In the future, ignorance of the law and frivolity may affect Your employment in the public sector. With a criminal past, it is impossible to work in law enforcement agencies, companies with state capital, banks, serve in the National Armed Forces, etc. As well as finding employment abroad, employers are asked for a police clearance certificate obtained in their home country. Embassies of third countries may refuse to issue a visa, and there may be many other inconveniences related. In further, a person may have difficulties and problems with obtaining financial services in banks in Latvia due to a damaged reputation.
Even if a person is unknowingly involved in such transactions, the consequences are severe. “Money mules” are most often tried to criminal liability according to Section 195 of the Criminal Law, the commission of the said crime is punishable by imprisonment for a term of up to 12 years, with or without confiscation of property.
What to do to avoid falling into the hands of fraudsters:
- never give Your bank account details to third parties;
- never give Your identity documents to any unauthorized person;
- never make transfers, cash withdrawals at ATMs, card payments on behalf of third parties;
- if You receive any suspicious emails or messages, do not reply or click on the suspicious links in the email;
- You do not agree to carry out cash transfers on behalf of a third party;
- If You suspect that You are involved in money laundering fraud, You should contact Your bank immediately and report it to the National Police by calling 110 or the nearest police station.
Ignorance of the law is no excuse. Protect yourself and the people close to You. The world changes over time, but fraudsters go with the times, so be vigilant and realize the importance of being cautious and critically evaluating "sweet" offers that are impossible in real life.
The online version (in Latvian) is available at: Raksts "Kas ir naudas mūlis un kā par tādu nekļūt".
Great article! It's essential to raise awareness about money mules and their risks. Forbes Latvia continues to provide valuable insights. Thanks for sharing. We are also a blogger read more at bbcworldinfo.