Money Laundering Through Social Media

Money laundering has been around for centuries, and it seems that criminals are always finding new ways to launder money. After e-gaming assets, NFTS and migrant smuggling, in recent years, social media has become a popular platform for money launderers. Why? Because it’s easy to use, and it’s a great way to target young people. In this blog post, we will discuss how money laundering through social media works, what impact it has and what are the sanctions.

What is money laundering?

Money laundering is the process of disguising illegally-obtained funds so that they appear to come from a legitimate source. In other words, it’s a way for criminals to hide the origins of their money.
Money mules are often used in money laundering schemes. A money mule is someone who transfers funds on behalf of another person or organization. Money mules are typically paid for their services, and they may not even know that they’re being used to launder money.

How does social media money laundering social media work?

The first step of money laundering through social media is about creating a fake account on a social media platform like Instagram and TikTok. Then, the criminals will use this account to advertise a “quick cash” scheme. The scheme will usually involve the mule (mainly 21-30-year-olds) transferring funds to the criminal’s account. The mule will typically receive a percentage of the money as payment. Of course, there is always a risk that the money mule will not receive their payment, or that they will be caught by law enforcement.

While some money mules may be willing participants in a money laundering scheme, others may not even know that they’re being used. In many cases, the mule is simply someone who is looking for a quick way to make some extra cash.

What is the impact of social media money laundering?

While social media money laundering is a relatively new phenomenon, it’s already having a major impact. In 2018, the FBI reported that money mules had laundered over $300 million through social media platforms. And as more and more people use social media, it’s likely that this type of crime will only increase.
In 2020, there have been over 17,000 cases involving young people aged 21-30. That figure was published by UK Finance and Cifas (fraud protection body).

What are the sanctions of social media money laundering?

Since money laundering is a federal crime, the penalties for those convicted can be severe. Money mules can be sentenced to up to 20 years in prison, and they may also be required to pay fines and restitution.
Social media money laundering is a serious problem, and it’s only getting worse. But by being aware of the dangers, you can protect yourself from becoming a victim.