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Daily News Analysis

Money mules

5th July, 2024 Economy

Money mules

Source: Economic Times

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  • Indian banks are tightening controls on new accounts amid rising money mule activities, involving fraud detection, stricter verification and RBI interventions.


Key points:

  • Digital frauds and money laundering are increasing in India with most of the criminals using mule accounts to move money.
  • These accounts are opened by sole proprietors or individuals to transfer funds anonymously.
  • Banks has made strict rules to open such accounts by requiring more documents and verification visits.
  • The government has initiated Indian Cyber Crime Coordination Centre (I4C) to combat mule accounts.

Money Mule

  • Definition:
    • A money mule is an individual who transfers or moves illegally acquired money on behalf of another person or organization.
  • Criminal Activities:
    • It proceeds through online scams, frauds, human trafficking and drug trafficking.
  • Methods of transferring funds:
    • Bank accounts, Cashier's checks, Virtual currency, Prepaid debit cards, Money service businesses.
  • Prevention Measures:
    • Educating the public about the risks and signs of becoming a money mule.
    • Strengthening banking and regulatory measures to detect and prevent mule activities.


Economic Times


Q. Consider the following statements regarding money mules:

1.Money mules are always aware that they are participating in illegal activities.

2.Money mules can move funds through virtual currencies.

3.Money mules help create distance between crime victims and criminals.

Which of the statements given above is/are correct?

A) 1 and 2 only

B) 2 and 3 only

C) 1 and 3 only

D) 1, 2, and 3

Answer: B