What Is a Mule Account? How to Spot the Scam and Avoid Being Tricked.
A mule account is a bank account that scammers use to anonymously receive money, which is often obtained illegally. Anyone involved with such an account may be investigated and face penalties, including imprisonment or a fine.
Mule accounts are a pervasive threat, especially for entrepreneurs who conduct business and accept payments through online channels. Scammers may lurk and deceive by opening mule accounts and using them as channels to receive money, leading to a growing number of victims whose accounts are impersonated or who are tricked into opening accounts without their knowledge. Understanding and being aware of this scam is crucial to protect yourself and your business from these criminal groups.
Table of Contents
- What is a Mule Account and What is its Purpose?
- How Many Types of Mule Accounts Are There?
- How Are Mule Accounts Dangerous?
- How Do Scammers Trick People into Opening Mule Accounts?
- How to Prevent Being Tricked into Opening a Mule Account
- What to Do if You've Been Tricked into Opening a Mule Account
- What is the Penalty for Being Hired to Open a Mule Account?
- Summary of Mule Account Dangers and Risk Reduction Measures
What is a Mule Account and What is its Purpose?
A Mule Account is a bank account that the account holder opens, but it is used for online transactions by another person, usually a scammer intending to deceive or cause financial loss to others.
The main purpose of using a mule account is to conceal or hide the scammer's identity, as the money circulating through these accounts is often obtained illegally through illicit financial transactions. Anyone involved with or receiving money transfers from a mule account may also come under investigation.
How Many Types of Mule Accounts Are There?
The Bank of Thailand has categorized mule accounts into 5 types based on behavior and the severity of their use:
- Black Mule: An account confirmed by the Anti-Money Laundering Office (AMLO) to be a mule account.
- Dark Gray Mule: An account that has been reported by a victim.
- Light Gray Mule: An account that has not yet been reported but has been used in a transaction that scammed a victim.
- Dark Brown Mule: An account that a financial institution has investigated and confirmed to be a mule account.
- Light Brown Mule: An account suspected of being a mule account.
How Are Mule Accounts Dangerous?
Scammers often use multiple mule accounts to receive and transfer money in a chain across various platforms to conceal the source of illegal income.
However, whenever authorities detect irregularities and investigate the financial trail, the list of all mule accounts will be exposed, severely affecting the account holders. These accounts will have their funds frozen, and if the account holder is a public figure or has a private business, it could impact their ongoing business operations.
How Do Scammers Trick People into Opening Mule Accounts?
Scammers' tricks come in many forms, and many cases pose a risk of leading to the unwitting opening of a mule account. Therefore, being aware of these scams can help everyone prepare and avoid these risks. Examples of common methods used by scammers include:
- Offering a sum of money in exchange for being hired to open an online account and providing personal account information.
- Claiming to be bank employees or government officials to request personal information such as full name, phone number, and ID card number, under the pretext of needing it for a security check, when in reality, they are stealing personal data to open a bank account.
- Deceiving people with job applications and requesting a copy of their ID card, then using it to open a new account and impersonating the account owner themselves.
How to Prevent Being Tricked into Opening a Mule Account
No matter how close the threat of mule account selling gets, if everyone remains vigilant and stays updated on news about online scams, they can surely stay safe from these threats. Here are ways to prevent becoming a victim of scammers and being tricked into opening a mule account:
- Absolutely do not open an account for anyone else, no matter how much compensation is offered.
- Be cautious of online job applications from companies without credible references, as the personal information you send to the employer could be used to open a mule account.
- Never give your bankbook, ATM card, or access to your banking application to anyone else.
- If you see any announcements about buying or selling mule accounts, report it to the hotline 191 or the Royal Thai Police hotline 1599.
What to Do if You've Been Tricked into Opening a Mule Account?
If you realize you have accidentally opened an account for someone else, contact bank officials and file a police report immediately. Reporting a mule account in a timely manner can help reduce potential damage in some cases and also demonstrates your good faith that you are not involved with the criminal group.
It is crucial to keep all evidence related to the account opening to submit with your complaint to the police or to be used in legal proceedings.
What is the Penalty for Being Hired to Open a Mule Account?
Opening a mule account means participating in a criminal enterprise. According to the law on mule accounts, those who are hired to open or sell a mule account are guilty under the Criminal Code and anti-money laundering laws. The account owner faces imprisonment for up to 3 years or a fine of up to 300,000 baht, or both.
Summary of Mule Account Dangers and Risk Reduction Measures
Mule accounts are a danger that threatens the financial security of the public. Scammers use various tricks to deceive people into opening accounts or stealing their personal information. Victims face having their funds frozen, being investigated, and may face legal penalties of up to 3 years in prison or a 300,000 baht fine. The best prevention is not to open accounts for others, not to fall for suspicious online job offers, and to report suspicious activities to the authorities immediately.
Additionally, KGP customers who experience problems or wish to report a financial threat from scammers can inquire or report the incident 24/7 through two main channels:
- Email: info.kgp@kasikornglobalpayment.com
- Phone: 02-008-8820, press 1
KGP, Payment. Make It Smooth.
LinkedIn : Kasikorn Global Payment
References
1. Getting to know "Mule Accounts," the (extremely) dangerous accounts with extraordinary penalties. (October 3, 2023). Thai Bankers' Association. https://www.tba.or.th/%E0%B8%97%E0%B8%B3%E0%B8%84%E0%B8%A7%E0%B8%B2%E0%B8%A1%E0%B8%A3%E0%B8%B9%E0%B9%89%E0%B8%88%E0%B8%B1%E0%B8%81-%E0%B8%9A%E0%B8%B1%E0%B8%8D%E0%B8%8A%E0%B8%B5%E0%B8%A1%E0%B9%8
9%E0%B8%B2/
2. BOT Publishes Guidelines for Managing Mule Accounts to Prevent Financial Crime. (January 30, 2025). Bank of Thailand. https://www.bot.or.th/th/news-and-media/news/news-20250130.html
3. Mule Account, Our Account, They Want It. (May 27, 2024). Office of Justice Affairs. https://justicechannel.org/listen/cybercrime/mule-account
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