Source: ABA Banking Journal, January 22, 2025

The American Bankers Association Foundation and the U.S. Postal Inspection Service today released three new infographics on money mule scams and check fraud as part of their shared ongoing initiatives to protect consumers from scams. The first infographic teaches consumers how to detect and avoid falling victim to a money mule scam. The second infographic teaches small business owners how to protect themselves from check fraud.

“These two types of fraud have been on the rise in recent years,” ABA Foundation Executive Director Lindsay Torrico said. “Raising awareness of what people should be looking for is more important now than ever.”

The infographics are part of an ongoing collaboration between the U.S. Postal Inspection Service and the ABA Foundation announced in 2024.

“The mission of the U.S. Postal Inspection Service is to safeguard our community from criminals who look to exploit them said, Gary Barksdale, chief postal inspector for the U.S. Postal Inspection Service. “That’s why the partnership between the Postal Inspection Service and the ABA Foundation is critical to ensuring consumers and businesses are aware of these scams – so they can prevent the losses that follow these attacks.”

Money mule scams

In a typical money mule scam, criminals use another person’s bank account to transfer and launder illegally acquired money. The person whose bank account is used may be a victim, unaware of the crime entirely, or they may be complicit in the fraud. Criminals often recruit through online job ads, social media, enticing — though fake — investment opportunities, prize offers or dating websites.

To avoid becoming a victim of a money mule scam, the U.S. Postal Inspection Service and ABA Foundation recommend that consumers:

• Do not use your own bank account, or open one in your name, to receive or transfer money for an employer or anyone else.
• Do not accept or endorse a check that is not in your name, even if a friend or employer asks you to do it.
• Do not incorporate a fictitious business to deposit a check corresponding to a similarly named business.
• Never pay to collect a prize or transfer money from your prize “winnings.”
• Never send money to online love interests, even if they appear to send you money first.
• Do not listen to anyone offering you a great cryptocurrency investment or asking you to deposit money into a Bitcoin ATM.
• Never purchase cryptocurrency or gift cards on behalf of, or for, someone you met online or over the phone.
• Never share your bank passcodes, including one-time verification codes, or provide anyone with access to your bank account, online credentials, debit card number or PIN.
• Always monitor your accounts and report suspicious activity to your bank.

Check fraud

To commit check fraud, criminals may steal and alter an existing check, or they may produce counterfeit checks to allow for unauthorized withdrawals. Bad actors often target business accounts over personal accounts because of large transaction volumes, more funds and higher liquidity, making it easier to cash higher dollar counterfeit or altered checks — and more difficult to detect fraudulent transactions and overdraft issues.

Small businesses should take the following steps to protect against check fraud:

• Adopt an employee need-to-know policy to limit access to sensitive information and business checks.
• Talk to your bank about services to monitor business account activity, such as fraud prevention programs (FPPs). FPPs can require and request verification for all checks drawn against specific accounts to detect and prevent fraudulent activity.
• Explore the use of a positive pay product with your bank to add another layer of validation protection to the check process.
• Confirm that all financial instruments drawn from your business accounts are received by the intended recipients. Any outstanding items should be flagged.
• Use the letter slots inside your local Post Office for your outgoing mail or hand it directly to a letter carrier.
• Pick up your mail promptly after delivery. Don’t leave it in your mailbox overnight. If you do not have weekend hours, coordinate with your local Post Office to hold any weekend mail until the following business day.