Authorities from Italy, Portugal, and Europol conducted raids on two money-mule recruitment networks suspected of working for crypto fraudsters who lacked the competence to launder more than €10 million ($10.8 million).
11 suspects and the alleged mastermind behind the money laundering scheme were apprehended by the police in raids on properties in France, Italy, and Romania from May 21 to 27. Crypto, jewelry, and electronics were also found after fifteen separate home searches.
One criminal organization used the money mule networks to launder its cryptocurrency using “rip-deal” schemes. Scammers pose as members of an international investment fund in these operations, aiming to defraud wealthy people who have an interest in real estate.
“The fraudsters contacted the victims, set up a meeting at expensive restaurants or hotels and told them to download software to handle cryptocurrency,” said Europol. The thieves gained access to the victims’ cryptocurrency wallets with the use of complex technological instruments the moment the victims loaded the app.
After tracing the crooks’ cryptocurrency, the police uncovered the mule networks. Once criminals pay a money mule a commission, the mules will take the money and deposit it into an account that another third party controls.
According to Europol, the major actors behind the rip-off crypto frauds sought assistance from money mule networks because they “lacked the technological ability” to properly launder their over €10 million ($10.8 million) in proceeds.
As a result of the growing problem with money mules, Europol launched its own campaign to bring attention to the issue: #DontBeaMule.
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