Money laundering is the process of making money acquired through illegal means appear legitimate. The “dirty” money is transformed into “clean” money in the hopes of avoiding criminal culpability for the illegally obtained funds. Money laundering is a crime punishable by jail time and other serious penalties. However, some people involved in money laundering schemes are not even aware that they are committing a crime. They may believe that they are working a legitimate job or even that they received a stroke of good fortune.
Read on to learn about some of the most common money laundering scams and how people get caught up in these scams.
Fake Lottery Winnings May Be Money Mule Scams
Finding out that you won prize money in a sweepstakes or lottery is great news. Unfortunately, scammers often use fake prize money to manipulate unsuspecting victims. The victims are told that they must pay some type of shipping and handling fee or tax fee before they can collect the prize money. However, the alleged prize money is fictitious and the victims never receive it. In some fake lottery scams, the victims are even tricked into laundering profits from criminal activities by receiving money and sending it to another party.
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