What are Mule accounts and rented accounts ?

What are Mule accounts and rented accounts ?

Mule Accounts:

• A mule account is used by criminals to move illicit funds from one place to another to conceal the origins and destination. Often, the account holder (or “mule”) may or may not be aware of the illegal nature of the transactions they’re helping to facilitate.
• Mule accounts are commonly part of schemes like money laundering, phishing, and business email compromise (BEC) fraud.
• Mules can be either unwitting participants (thinking they’re doing legitimate work) or complicit participants (knowing they’re assisting in a crime).

Rented Accounts:

• Rented accounts, on the other hand, involve individuals who knowingly “rent out” access to their bank accounts to someone else, often in exchange for a fee.
• In a rented account scheme, the account holder is usually aware that they’re giving someone else access, though they might not always know the specifics of the illegal activities involved.
• Rented accounts are similarly used in fraud and laundering but are often more intentional. They’re also riskier for the renter, as they actively participate in providing access.

Key Differences:

Awareness: Mule account holders can be unknowing participants, while rented account holders are generally aware that they’re renting out their account.

Operation: Mule accounts are typically controlled by a third party after recruiting the account holder, while rented accounts are provided intentionally for temporary use by the account holder.

 Example:

Mule Account: A person responds to a job ad offering easy income for transferring funds, unaware that the money originates from phishing scams.

Rented Account: An individual is approached with an offer to let someone use their account in exchange for a monthly fee. They allow access, knowing that the third party will be using it for unknown purposes.

Both types are frequently flagged by banks for potential money laundering and fraud, as they’re used to disguise the movement of funds in criminal schemes.