British Columbia authorities send warnings to 10 suspected ‘money mules’

B.C.’s securities watchdog and the RCMP say they have sent warnings to nearly a dozen suspected “money mules,” people suspected of moving money on behalf of of criminals.

The BC Securities Commission (BCSC) has identified 10 suspects after discovering information that they had sent or received money or cryptocurrency obtained from victims of investment fraud, according to the RCMP.

Suspects in Metro Vancouver were hand-delivered warning letters in late May, police say, and could face criminal charges if they continue to transfer funds on behalf of criminals.

“Money mules are used in money laundering. They allow criminals to move their ill-gotten gains by concealing the identity as well as the source and destination of the funds,” Sammy Wu, manager BCSC investigations.

Authorities say “money mules” may not know they are helping criminals and may even be victims of an investment scam themselves.

BCSC’s Sammy Wu says suspected money mules allegedly transferred hundreds of thousands of dollars on behalf of criminals. (Martin Diotte/CBC)

How Money Mules Are Recruited

Police say criminals recruit money mules using several tactics.

Criminals may lie about their identity, promise job offers, or form friendships or romantic relationships with people online, often promising a portion of the funds transferred.

Wu said it is difficult to quantify exactly how much money was transferred, but he estimates it is in the hundreds of thousands.

People who move money on behalf of criminals can be criminally charged with possession or laundering the proceeds of crime. The BCSC can also make allegations of misconduct under the British Columbia Securities Act if a person transfers money for another as part of an investment fraud scheme.

In Canada, investment fraud is usually part of larger criminal networks abroad, according to police. The BCSC began investigating fraudulent investment scams in 2020, Wu said.

At the start of the investigation, the organized crime groups believed to be behind the scams came from Nigeria and Eastern Europe, according to Wu. Today, the groups are mostly from South Asia. Southeast, he explained, although other countries are still involved.

The RCMP says you shouldn’t transfer money in someone’s name if you haven’t met them in person, and ignore online messages that promise quick money for little or no work. (iStockphoto)

“We know that several organized crime groups are involved,” Supt. Adam MacIntosh of the RCMP Financial Integrity Program.

Wu said the use of local mules has grown.

The RCMP advises people not to transfer money in someone’s name if they have not met them in person, and to ignore online messages that promise quick money for little or no money. work. If you have ever received money or cryptocurrency from someone you met online, police advise you to notify your bank and report it to the BCSC or RCMP.