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OPP, RCMP hosting live chat about fraud involving 'money mules'

Money mules 'may or may not be aware that they are a pawn in a larger network'
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Authorities are raising awareness about a type of fraud that uses people as “money mules.”

The Ontario Provincial Police (OPP), the Canadian Anti-Fraud Centre (CAFC) and the Royal Canadian Mounted Police have teamed up for a campaign, running June 6 to 10, to highlight “how fraudsters are using unsuspecting victims as money mules to launder funds and proceeds of crime,” OPP explained in a news release.

Last year was a “historic” one for the number of frauds reported to the CAFC, police said. Financial losses totalled $380 million, up from $164 million in 2020, though it’s estimated only five per cent of victims report instances of fraud.

“With the sharp increase in reported frauds and the noticeable prevalence of money mules, the partners want to educate Canadians on the various frauds that utilize money mules, in addition to providing general awareness to prevent victimization,” police stated.

They describe a money mule as “an individual who is recruited by fraudsters to serve as a middle person to transfer stolen money.

“The mule may or may not be aware that they are a pawn in a larger network. When a mule moves money, it becomes harder to identify the fraudsters from the victims, and can lead to victims being tied to serious crimes.”

Money transfers are often completed through bank wire, email, money service businesses and cryptocurrency.

“Typically, mules get paid for their services, receiving a small percentage of the money transferred, but fraudsters may disguise these funds as ‘a payment from clients,’ ‘a loan for a crypto investment,’ ‘prize winnings’ and much more,” police explained.

“Through awareness and education, Canadians can be better prepared and protected.”

The OPP and the CAFC will host a live chat on their social media channels June 8 at 10 a.m., when they will talk about money mules and other frauds. Guest speakers will include Nancy Cahill, an intelligence researcher/profiler with the CAFC, and Acting Det.-Sgt. John Armit, a CAFC liaison officer. Members of the public are encouraged to take part by using the hashtags #DontBeAMule, #kNOwFraud, #Take5 and #Tell2.

Tips and information on available resources will be shared.

Anyone who is a victim of a scam, fraud or cybercrime is urged to contact their local police. Instances of fraud can also be reported to the CAFC online or by phone at 1-888-495-8501.