Leo Earl Sharp Sr. was a World War II veteran and horticulturist who came to work for a cartel to alleviate the financial hardship he was facing. He acted as a “mule” for almost four years and was arrested in 2011 at the age of 87.

This is the second of a two-part article about the use of largely unsuspecting individuals by fraudsters who propagate criminal activity through financial institutions. In part one, the types of individuals who serve as mules were defined: unwitting, witting, and complicit. The first part also explains why certain groups of individuals – seniors, young adults, and the chronically underemployed – are commonly targeted by fraudsters.

Money Mules Break the Law

Someone thinking about becoming a willing money mule might dismiss any parallels with their own circumstances and the life of Leo Sharp, as he was involved in the movement of illegal substances. Moving money, someone might try to argue, is a victimless crime. This isn’t true! Money stolen means that a victim always exists. And it would also be a false assumption to believe that financial institutions are the only victims of such activity.

Many consumers are impacted by financial fraud, and they often don’t have their personal losses restored yet. In 2024 alone, the Federal Trade Commission reported that American consumers lost an estimated $12.5 billion to financial fraud. Money mule accounts are commonly used to implement certain types of fraud or to serve as a pass-through account that helps a fraudster launder their money.

As a money mule, an individual can be prosecuted for many things. The criminality, prosecutors have explained, exists whether or not mules had knowledge of what they were doing.

The Federal Bureau of Investigation (FBI) has reported on multiple efforts over the last several years. In one instance, approximately 3,000 money mules were arrested in the United States as part of a large-scale operation involving government institutions. These individuals were linked to a variety of scams.

More Risks than Just Law Enforcement

Even if law enforcement does not target a particular money mule, it is common for financial institutions (FIs) to take aggressive action against accounts suspected of involvement in fraudulent activity or money laundering. Accounts will be frozen or closed by FIs to protect you, the member, and if a loss is incurred when an account is closed, that loss will stay with the money mule in their credit history. This, in turn, can have an effect on the money mule’s ability to open accounts elsewhere or to secure a credit card or loan.

This potential consequence from such fraudulent activity is important for a money mule to keep in mind. Fraudsters commonly do not use their real identities when conducting bank fraud. This makes them harder to track down (unless law enforcement becomes involved). FIs will focus on individuals who can be readily identified, such as the money mule who typically uses their real identity to set up accounts, and will concentrate all efforts on these mules for reimbursement. Money mules, who are expendable in the eyes of the fraudsters, are left behind – fully accountable for all that happens with those accounts.

If these repercussions are not frightening enough, money mules also find they are never truly free from the fraudsters with whom they worked. Those fraudsters will have the mules’ personal identifiable information (PII). The mules who stop moving money and helping conduct fraudulent transactions may become victims of identity theft, where the fraudsters use this PII to set up other accounts across the country and start new schemes, which will create more financial troubles, all in the mule’s name.

Staying Away from Trouble

The simplest way to avoid being drawn into the role of a money mule is to simply say “NO”. The answer is “NO” when:

• Someone you do not know well asks for direct access to your bank account.
• You are asked by an acquaintance to open a new bank account in your name for reasons that are not made clear.
• You are asked by a new contact to deposit a check or accept an account-to-account (A2A) transfer in your account because they do not have an account of their own.

Avoid being groomed over time by a new acquaintance. Avoid emotional appeals tied to financial requests. And avoid making new acquaintances through social media posts, such as Telegram and TikTok, that make vague references to financial opportunities.

However, if you make the mistake of agreeing to any such request, then remain on heightened alert for requested transactions from your acquaintance that are likely to indicate fraud activity, including:

• Frequent transfers of funds to multiple accounts
• Rapid movement of money, with funds deposited and withdrawn within hours or a few days
• Unusual account activity like large deposits from sources that do not have any obvious connection to your acquaintance
• Directions to use multiple payment channels such as Zelle, CashApp, or cryptocurrency
• Receiving instructions to keep a portion of the funds that flow through your account for payment
• Never meeting this new acquaintance in person

If you see any activity similar to these red flags,

• Immediately stop conducting transactions for your new acquaintance
• Contact the financial institution where the money mule account is set up
• Contact local law enforcement

Do not expose yourself to criminal prosecution or civil litigation. Do not put your reputation at risk. Regardless of whatever money is promised to you to act as a money mule, it cannot be worth the stress and humiliation. Remember Leo Sharp was a senior and veteran who grew lovely flowers, and he was still sent to prison.