Money Mule and Job Scams in Australia: The Legal Risk and What to Do

This page explains money mule and job scams in Australia: how people are recruited, why the person whose account is used can face criminal liability under federal law, and what to do if money has already gone through your account. It covers the federal Criminal Code as at 25 October 2026 and does not cover state or territory offences. It is general information, not legal advice; if police contact you about money in your account, get advice from a lawyer. For other scam types, start at the Australian scams hub.

What a money mule is

Scamwatch defines it this way: "Money mule scams are when criminals use bank accounts to transfer and launder money that is either stolen or used to fund serious crime." The victim receives money into a personal account and transfers it on, to other bank accounts, crypto wallets or gift cards, sometimes keeping a commission.

The Australian Federal Police (AFP) and the Australian Banking Association stress that people become mules "knowingly or unknowingly." Some are deceived into it. Others rent or sell their account outright: citing AUSTRAC, the AFP says mules are paid "anywhere from $200 to $500 for the use of their personal accounts" and may get a commission of "typically about 10 per cent" on money received.

The money is usually other people's scam losses. AFCA, which hears complaints from scam victims, says the money a job-scam mule moves "is generally from other victims of scams." The AFP adds that a mule account "may be housing money derived from scams, extortion, drug trafficking and terrorism."

How people get recruited

Fake jobs

Scamwatch says money mule scams "often begin with a job offer using social media, instant messaging platforms, online pop-up ads, and email." The job titles sound ordinary: Scamwatch lists "'administrator', 'assistant', 'finance agent', 'remote cashier', or 'bookkeeper'". The job itself, in AFCA's description, involves receiving third-party payments and transferring them to other accounts while keeping a small commission.

A related trap is the task-based job scam. You are paid small amounts for simple tasks such as rating products, then told to top up an account with your own money or crypto to unlock earnings. Scamwatch says: "You will never be able to withdraw your earnings or the money that you've paid." Task scams mostly take your money rather than use your account, but they often collect identity documents along the way, which can later be used to open accounts in your name.

Romance and friendship

Scamwatch warns that relationship scammers "might ask you to set up accounts or transfer money they give you," and says: "Never agree to transfer money for someone else. They may be involving you in a crime called money laundering." The AFP describes the same pattern, where a scammer builds a relationship online and asks the victim to move money to other accounts, typically overseas.

Threats and crypto

The AFP also lists threat scams among the recruitment routes, and says criminal networks increasingly instruct mules to move money through crypto exchanges, crypto ATMs and global money transfer apps, including withdrawing cash and depositing it into a crypto ATM. Moneysmart warns about job offers "trading crypto or working for a crypto platform", saying scammers use people this way to launder money and "You could be charged by state or federal police."

Warning signs

• The job involves "transferring money, making purchases, or receiving packages on behalf of someone else" (Scamwatch).
• You are offered quick money for little work, or a payment for the use of your account.
• Someone asks to use or "borrow" your bank account, or asks you to open a new account for them.
• You are asked to pay money upfront. The AFP says: "Legitimate employers never ask for money upfront."
• Money arrives from people you do not know, with instructions to send it on quickly.
• The recruiter only talks to you on a messaging app and avoids any official contact channel.

Why you can be at criminal risk

Scamwatch is direct: "Acting as a money mule is a serious crime, even if you don't know or understand how the money is being used." The AFP says money laundering charges carry "a maximum penalty of life imprisonment in Australia," and an AFP detective superintendent has said that "It is illegal to rent, buy or sell bank accounts." That statement was not tied to a particular section; the federal offences that apply to moving money are in Division 400 of the Criminal Code.

What counts as dealing with money

Division 400 is built around "dealing with" money or property. Section 400.2 says a person deals with money if they "receive, possess, conceal or dispose of" it, import or export it, or "engage in a banking transaction relating to" it. Receiving a transfer into your account and sending it on is squarely within that definition.

Knowledge is not always required

The offences come in levels, set by the value of the money and by your state of mind. The most serious require that you believe the money is proceeds of crime, or intend it to be used for crime. But lower limbs exist. At the $10,000 tier, for example, section 400.6 has three levels:

The belief-level penalties rise with value: life imprisonment for $10,000,000 or more (s 400.2B), 25 years for $1,000,000 or more (s 400.3), 20 years for $100,000 or more (s 400.4), 15 years for $50,000 or more (s 400.5), 5 years for $1,000 or more (s 400.7), and 12 months for any value (s 400.8). Section 400.8 also has reckless and negligent limbs for money of any value.

Reasonable suspicion is enough for one offence

Section 400.9 is the offence most directly aimed at people who say they did not know. It applies where a person deals with money and "it is reasonable to suspect that the money or property is proceeds of indictable crime." The section treats it as reasonable to suspect in some situations, including where a person says they moved the money on behalf of or at the request of someone else but has not provided information that lets that person be identified and located (s 400.9(2)(e)). The maximum penalties are:

Read together, these limbs mean that a person who did not know the money was criminal can still commit an offence, depending on what they knew and what a reasonable person would have suspected. That is a reading of the section text, not a prediction about any case: whether anyone is charged, and with what, depends on the facts and on prosecutors and courts. For the reasonable-suspicion offence, section 400.9(5) says the section does not apply if the person proves they had no reasonable grounds for suspecting that the money was derived or realised, directly or indirectly, from some form of unlawful activity. The person carries the legal burden of proving that. Section 400.10, headed mistake of fact as to the value of money or property, covers a mistaken but reasonable belief about the value of the money, which can rule out a higher-value offence while leaving a lower-value one, and it is not a defence of not knowing the money was criminal. These are the federal offences; Moneysmart notes you could be charged by state or federal police, and states have their own laws, which this page does not cover.

These are not theoretical. The AFP has reported that in April 2025 a Sydney woman was jailed for renting 10 bank accounts to a money laundering syndicate, accounts used to launder $3.8 million that was ultimately transferred overseas.

Other consequences

The AFP says police and banks work every day to "shut down accounts linked to money mule activity," and warns that "If a criminal has access to your bank accounts and personal details, they may use this information to commit other crimes, potentially implicating you in their illegal activities."

What to do if money has already gone through your account

If you think you have been used as a mule, act now. Coming forward early is far better than continuing.

1. Stop. Do not move any more money for anyone, including money the recruiter says must be sent "back" or is a refund. Scamwatch says: "Never allow anyone to use your bank account or to move money through your account."
2. Stop all contact with the person or group that recruited you or gave you instructions. Keep the messages, job ads, payment records and account details as evidence rather than deleting them.
3. Tell your bank. The AFP says to contact your financial institution "if you have transferred money or suspect unusual account activity." Tell the bank honestly what happened and ask what it needs you to do about any money still sitting in the account. Do not decide on your own where that money should go.
4. Report to police through ReportCyber, as the AFP recommends, and report the scam to Scamwatch. If you were contacted on social media, report the account to the platform too.
5. Protect your identity. If you gave the recruiter your licence, passport, Medicare card or bank login, call IDCARE on 1800 595 160 and change your passwords.
6. Get legal advice if police contact you about the money. Community legal centres may be able to give free legal advice (Moneysmart links to them); check what your local centre offers.

If you also lost your own money, for example fees for a fake job or "top-ups" in a task scam, you were scammed as well. Your bank and AFCA options are on how to get money back after a scam in Australia, and the reporting channels are on how to report a scam.

If someone you know is involved

Mules are often young people, students, recent arrivals or people in a new relationship, and they may not see the risk. Scamwatch says you can report a scam on behalf of someone else, and advises: "Never ridicule or make fun of someone's circumstances." Explain plainly that moving money for others can be a crime even without knowing where it came from, and help them contact their bank.

If they are feeling overwhelmed, Lifeline (13 11 14) and Beyond Blue (1300 224 636) offer 24/7 support.

Frequently Asked Questions

Is being a money mule illegal in Australia if I did not know?

It can be. Scamwatch says acting as a money mule is a serious crime even if you do not know how the money is being used. Some federal money laundering offences require only recklessness, negligence or circumstances where it is reasonable to suspect the money is criminal proceeds. For that reasonable-suspicion offence, it is a defence if the person proves they had no reasonable grounds for suspecting the money came from unlawful activity. Whether a person is charged depends on the facts.

What is the penalty for money laundering in Australia?

Under Division 400 of the Criminal Code, penalties depend on the value and the person's state of mind. They range from 10 penalty units for negligently dealing with money of any value, up to life imprisonment for dealing with $10 million or more that the person believes is proceeds of crime. Dealing with under $100,000 where it is reasonable to suspect it is proceeds of crime carries up to 2 years.

A stranger sent money to my account and asked me to send it on. What should I do?

Do not send it anywhere. Contact your bank, explain what happened and ask what to do with the money. Stop contact with the sender, keep the messages, and report it to police through ReportCyber and to Scamwatch.

Is it illegal to rent or sell my bank account?

The AFP says it is illegal to rent, buy or sell bank accounts. The federal laundering offences cover receiving and transferring money through an account. Never let anyone else use your account.

How do I spot a money mule job ad?

Warning signs include a job that involves transferring money, making purchases or receiving packages for someone else, easy money for little work, a request to use your account, or a request for money upfront. Legitimate employers do not ask you to move money through your personal account.

Will I get in trouble if I report it?

This page cannot predict that, and it depends on the facts. Stopping immediately, telling your bank and reporting to police are the steps official sources recommend. If police contact you, get legal advice first; a community legal centre may be able to help for free.