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TruStage RISK Alert: Money Mules and Member-to-Member Transfers

Criminals are increasingly using complex schemes to launder money. According to a new Risk Alert from TruStage, the latest tactic has criminals taking over accounts and transferring those funds, through money mules, at the same credit union. Find out how to protect your credit union.

Money mules are more prevalent in schemes orchestrated by fraudsters who seek to launder stolen funds obtained through account takeovers. Money mules are often recruited through social media platforms to open fraudulent accounts at specific credit unions, using their own identities as well as stolen and synthetic identities. Fraudsters promise the money mules they will make a lot of money. Money mules may open accounts online or in-person at a branch, in addition to using various methods to transfer funds. Most recently, the member-to-member transfer feature has been prevalent.

Upon receiving the funds, the money mules withdraw the funds through various means, including in-person withdrawals at a branch, ATM, POS (usually to purchase gift cards), Cash App, Apple Cash and at casinos.

Credit unions should remain cautious when opening new accounts due to the increase in this type of scheme. It underscores the importance of robust security tools and vigilance to protect members and the credit union.

For more information and detailed risk mitigation tips, read the full alert at:
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