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‘Money Mule’ Gangs Turn to Bitcoin ATMs

Discussion in 'KrebsonSecurity' started by RSS, Sep 29, 2016.

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    RSS New Member Member

    Fraudsters who hack corporate bank accounts typically launder stolen funds by making deposits from the hacked company into accounts owned by “money mules,” willing or unwitting dupes recruited through work-at-home job scams. The mules usually are then asked to withdraw the funds in cash and wire the money to the scammers. Increasingly, however, the mules are being instructed to remit the stolen money via Bitcoin ATMs.

    I recently heard from a reader in Canada who said she’d recently accepted a job as a customer service officer for a company called LunarBay. This company claims to be a software development firm, and told this reader they needed to hire people to help process payments for LunarBay’s clients.

    LunarBay’s Web site — Lunarbay[dot]biz — claims the company has been in business for several years, and even references a legitimate business by the same name in the United Kingdom. But the domain name was registered only in late August 2016, and appears to have lifted all of its content from a legitimate Australian digital marketing firm called Bonfire.

    The Canadian reader who contacted KrebsOnSecurity about this scam was offered $870 per week and a five percent commission on every transaction she handled. After providing her bank account information to get paid, she became suspicious when she received instructions on how to forward funds on the LunarBay.

    The scammers told her to withdraw the money from her account by going into the bank itself — not from the ATM (mainly due to daily withdrawal limits at the ATM). They also sent her a QR code (pictured below) that she was instructed to save as an image on her smartphone. The crooks then proceeded to tell her the location of the nearest Bitcoin ATM:

    a) The nearest Bitcoin ATM is located at: 6364 Rue Pascal, Montréal-Nord, QC H1G 1T6, Canada (Bitcoin ATM is located at Dépanneur Pascal 2003 convenience shop in Montreal).

    b) You can find the instructions of how to make payment using Bitcoin ATM in this video

    c) Please find the image attached to this message. This is a QR code – an unique identification number for a transaction. I ask you to save this image to your smartphone beforehand.

    4. The payment must be processed within 3 hours. The Bitcoin rate is constantly changing in relation to CAD, USD and other currencies. That’s why the payment must be made during this time interval.

    As the above Youtube video demonstrates, sending funds merely requires the user to scan a QR code shared by the intended recipient, and then insert cash into the Bitcoin ATM. Because Bitcoin is a non-refundable form of payment, once the money is sent the transaction cannot be reversed.

    It’s not immediately clear why these thieves are avoiding tried-and-true methods of disbursing cash — like Western Union and MoneyGram — in favor of Bitcoin ATMs. I suppose it’s possible that the wire transfer companies are getting better at detecting and blocking suspicious transactions, but I doubt that’s the reason. More likely, sending cash via Bitcoin results in a more immediate payday for the scammers, and avoids the costs and hassle associated with hiring “far-end” mules to collect fraudulent wire transfers in the scammer’s home country.

    The QR code used by the scammers at the fake LunarBay company.

    It may seem difficult to believe that people might be gullible enough to to get embroiled in such money laundering scams, but countless individuals do every day. The crooks operating this scam no doubt use multiple QR codes linked to many different Bitcoin addresses. The one given to the reader who contacted me links to this Bitcoin account, which has received a total of eight transactions over three days this past week totaling more than 6.3 Bitcoins — roughly $3,823 at current exchange rates.

    Word to the wise: Money mule scammers specialize in hacking employer accounts at job recruitment Web sites like Monster.com, Hotjobs.com and other popular employment search services. Armed with the employer accounts, the crooks are free to search through millions of resumes and reach out to people who are currently between jobs or seeking part-time employment.

    If you receive a job solicitation via email that sounds too-good-to-be-true, it probably is related in some way to one of these money-laundering schemes. Even if you can’t see the downside to you, someone is likely getting ripped off. Also, know that money mules — however unwitting — may find themselves in hot water with local police, and may be asked by their bank to pay back funds that were illegally transferred into the mules’ account.

    For more on the crucial role of money mules in facilitating cybercrime, check out these stories.

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