Money Mule Scam Targeting the Elderly

The FDIC OIG is alerting banks and consumers of “Money Mule” scams targeting the elderly and FDIC-regulated and insured institutions. 

How it Works

In this scheme, fraud perpetrators are printing false or fictitious United States Savings Bonds and recruiting elderly citizens from assisted living facilities and nursing homes to deposit and cash the bonds in their FDIC-insured accounts, in exchange for payments.

Once the funds become available, they are withdrawn before the checks are identified as forgeries, causing a loss to the bank and the elderly account holders.

Bad actors in these schemes have been captured on video at FDIC-insured banks and at credit unions. One counterfeit United States Savings Bond scheme has resulted in a loss of $1.8 million.

Red Flags

• Being approached by a stranger asking if you want to make money by cashing treasury bonds through your bank account in exchange for money.
• Being asked to keep bank transactions private from bank employees or family members.
• Strangers contacting the elderly population at assisted living facilities, nursing homes, and through social media.

Protect Yourself

• Do not agree to cash savings bonds in your bank account.
• If you are asked to do so, contact law enforcement.
• Do not give anyone your bank account credentials or PIN.
• Do not meet strangers in person.
• Stop communication immediately if a stranger, friend, or love interest asks for assistance with financial transactions.

If You Have Been a Victim

• Stop all communication with the scammers immediately.
• Notify your bank to secure your account.
• Report the activity to the FBI's Internet Crime Complaint Center and the FDIC OIG Hotline.
• Call the National Elder Fraud Hotline: 1-833-FRAUD-11 to report the scheme.

Additional Resources: 

• FDIC OIG Public Service Alert – Money Mules
• Money Mules — FBI
• Money Mule Scams | American Bankers Association
• How to Spot the Warning Signs of a Money Mule Scam