Parcel mule scam

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The parcel mule scam, also known as the reshipping scam, involves scammers and unsuspecting victims handling goods [1] to other countries. In some ways it is similar to the money mule scam. Scammers use fake advertising [2] to hire mules. Items are bought with stolen cards, [2] and since the goods are typically re-sold once shipped, this scam can be viewed as an indirect form of money laundering.

Contents

Premise

In the parcel mule scam, scammers often attract their victims under the guise of a bogus work-from-home opportunity, [1] although other angles, such as a romance scam may be used to lure victims. [1] Victims begin to receive packages, often with high value contents (such as consumer electronics or designer clothes and shoes) at the address they provided the scammer. [3] The goods in the packages are either fraudulently bought (for example, with a stolen credit card or bank account) or are stolen or counterfeit goods. They are then asked to repackage the item(s) and send them to another address, which may or may not be an international address. Often this new address belongs to another victim or a person who is directly involved in the scam. By routing the packages through many different people, the original scammer(s) become difficult to track down. After the package is sent to another address and proof is sent to the scammer, the victim may be offered monetary compensation. [4]

Although the victim may be offered money, this scam often operates in tandem with either a cheque fraud scam (where the check or money transfer the victim receives is fraudulent) or an advance-fee scam (if the victim is required to pay up front for costs, such as postage, with the promise of reimbursement). [5] This scam can also operate alongside a money mule scam, where the victim is transferred money (often from an untraceable source, such as a wire transfer) and told to keep a portion of the money while wiring the rest of the funds to someone else (either another victim or a scammer). [4] In any case where funds are illegally obtained, the victim will also be liable for the full amount of money if the check or wire transfer they are given is reversed. [4] It is also possible that the victim's personal information, such as address or bank account information, may be exposed.

Authorities generally advise that anyone who suspects that they are a victim of a parcel mule scam to report it to the authorities. People involved in reshipping scams, whether or not they are a willing accomplice, can potentially be charged with several felonies. [4] Authorities also caution consumers not to accept a job offer that requires them to reship goods, not to accept packages at their address from people they don't know, and if strange packages do arrive at their address, not to reship them to another address. [4]

Example

One famous scam was organized under the "Air Parcel Express" corporate name. [6] Criminals purchased items in the United States [1] and sent them via mules [1] to Russia and Belarus, [6] where they were then sold. Items included iPods, PlayStations, smartphones, and laptops. [6]

Related Research Articles

<span class="mw-page-title-main">Advance-fee scam</span> Type of confidence trick fraud

An advance-fee scam is a form of fraud and is one of the most common types of confidence tricks. The scam typically involves promising the victim a significant share of a large sum of money, in return for a small up-front payment, which the fraudster claims will be used to obtain the large sum. If a victim makes the payment, the fraudster either invents a series of further fees for the victim to pay or simply disappears.

<span class="mw-page-title-main">Internet fraud</span> Fraud or deception using the Internet

Internet fraud is a type of cybercrime fraud or deception which makes use of the Internet and could involve hiding of information or providing incorrect information for the purpose of tricking victims out of money, property, and inheritance. Internet fraud is not considered a single, distinctive crime but covers a range of illegal and illicit actions that are committed in cyberspace. It is, however, differentiated from theft since, in this case, the victim voluntarily and knowingly provides the information, money or property to the perpetrator. It is also distinguished by the way it involves temporally and spatially separated offenders.

Email fraud is intentional deception for either personal gain or to damage another individual using email as the vehicle. Almost as soon as email became widely used, it began to be used as a means to defraud people, just as telephony and paper mail were used by previous generations.

<span class="mw-page-title-main">Lottery scam</span> Fraud pretending to be a lottery

A lottery scam is a type of advance-fee fraud which begins with an unexpected email notification, phone call, or mailing explaining that "You have won!" a large sum of money in a lottery. The recipient of the message—the target of the scam—is usually told to keep the notice secret, "due to a mix-up in some of the names and numbers," and to contact a "claims agent." After contacting the agent, the target of the scam will be asked to pay "processing fees" or "transfer charges" so that the winnings can be distributed, but will never receive any lottery payment. Many email lottery scams use the names of legitimate lottery organizations or other legitimate corporations/companies, but this does not mean the legitimate organizations are in any way involved with the scams.

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The bogus escrow scam is a straightforward confidence trick in which a scammer operates a bogus escrow service.

<span class="mw-page-title-main">Romance scam</span> Confidence trick using romantic intentions

A romance scam is a confidence trick involving feigning romantic intentions towards a victim, gaining the victim's affection, and then using that goodwill to get the victim to send money to the scammer under false pretenses or to commit fraud against the victim. Fraudulent acts may involve access to the victim's money, bank accounts, credit cards, passports, e-mail accounts, or national identification numbers; or forcing the victims to commit financial fraud on their behalf.

Voice phishing, or vishing, is the use of telephony to conduct phishing attacks.

In a reloading scam, a victim is repeatedly approached by con artists, often until "sucked dry". This form of fraud is perpetrated on those more susceptible to pressure after the first losses, perhaps because of hopes to recover money previously invested, perhaps because of inability to say "no" to a con man.

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Telemarketing fraud is fraudulent selling conducted over the telephone. The term is also used for telephone fraud not involving selling.

<span class="mw-page-title-main">Work-at-home scheme</span> Scams focused on businesses run from ones home

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<span class="mw-page-title-main">Credit card fraud</span> Financial crime

Credit card fraud is an inclusive term for fraud committed using a payment card, such as a credit card or debit card. The purpose may be to obtain goods or services or to make payment to another account, which is controlled by a criminal. The Payment Card Industry Data Security Standard is the data security standard created to help financial institutions process card payments securely and reduce card fraud.

The green goods scam, also known as the "green goods game", was a fraud scheme popular in the 19th-century United States in which people were duped into paying for worthless counterfeit money. It is a variation on the pig-in-a-poke scam using money instead of other goods like a pig.

Utility scams are fraudulent acts where a perpetrator calls or arrives unannounced at a utility customer's house in an attempt to take money or sell unnecessary energy accessories through misrepresentation. Often, the fraud involves telling the victim that he or she owes the utility company money and that their power, gas, or water will be shut off immediately unless payment is made.

An SSA impersonation scam, or SSA scam, is a class of telecommunications fraud and scam which targets citizens of the United States by impersonating personnel of the Social Security Administration. SSA scams are typically initiated by pre-recorded messages, or robocalls, which are designed to panic the victim so that they follow the scammer's instructions. In 2018, over 35,000 incidences of SSA scam robocalls were reported to the Better Business Bureau, and the total losses of victims added up to over $10 million. It is believed that approximately 47% of Americans were subject to an SSA impersonation scam robocall during a three-month period in mid- to late 2020, and that 21% of seniors were targeted by at least three SSA scam robocalls in the same time period.

An overpayment scam, also known as a refund scam, is a type of confidence trick designed to prey upon victims' good faith. In the most basic form, an overpayment scam consists of a scammer claiming, falsely, to have sent a victim an excess amount of money. The scammer then attempts to convince the victim to return the difference between the sent amount and the intended amount. This scam can take a number of forms, including check overpayment scams and online refund scams.

<span class="mw-page-title-main">Package redirection scam</span> Form of e-commerce fraud

A package redirection scam is a form of e-commerce fraud, where a malicious actor manipulates a shipping label, to trick the mail carrier into delivering the package to the wrong address. This is usually done through product returns to make the merchant believe that they mishandled the return package, and thus provide a refund without the item being returned. It can also be done by the seller, generally by creating fraudulent online stores or creating fake listings on sites such as eBay or Mercari. This makes it very hard to perform a chargeback, as the tracking shows the item has been delivered. This is also known as an FTID scam, standing for Fake Tracking ID. When this scam is successful, the tracking number will show that the package has been delivered to the correct address, when the package was instead delivered to a different address. This package is generally empty or filled with garbage. However, this scam has mostly been “patched” via new technology provided by the various couriers globally. It is estimated the scam cost retailers £18,000,000,000 in lost revenue.

A pig butchering scam is a type of long-term confidence trick and investment fraud in which the victim is gradually lured into making increasing contributions, usually in the form of cryptocurrency, to a fraudulent cryptocurrency scheme. The scammer builds trust with the victim through online communication, subsequently persuading them to invest in a fraudulent cryptocurrency scheme. Frequently, the victim is induced to make further payments before realizing they have fallen prey to fraud. The "butchering" or "slaughtering" of the victim transpires when their assets or funds are stolen by the criminal(s), leading to significant financial and emotional distress for the victim.

References

  1. 1 2 3 4 5 Leyden, John (28 October 2008). "Parcel mules scam exposed: Cybercrook, keen phisherman seeks reliable partners on dating sites". The Register.
  2. 1 2 Greek, Dinah (27 October 2008). "Criminals dupe vulnerable into handling stolen goods: Fraudsters targeting women on dating websites in particular". Computeract!ve. Archived from the original on 31 October 2008. Retrieved 15 February 2015.
  3. ↑ "Do not be a Parcel Mule as Part of a Reshipping Scam | Crime Prevention News | 3rd September 2015 | The Crime Prevention Website". thecrimepreventionwebsite.com. 3 September 2015. Retrieved 4 October 2021.
  4. 1 2 3 4 5 "Notice 129: Don't Be the Victim of a Reshipping Scam: USPS" (PDF).
  5. ↑ "Reshipping Fraud – Parcel Mule Scams – HOAX DETECTION AND ANALYZER" . Retrieved 4 October 2021.
  6. 1 2 3 RSA FraudAction Research Lab (12 November 2009). "Deep Inside a Reshipping Scam: Mules Victimized by "Air Parcel Express"". Archived from the original on 13 August 2010. Retrieved 16 February 2015.
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