New 'Credit Mule' Scam Preys on the Cash-Strapped

Original article located here : http://www.cgsb.com/UploadedFiles/Files ... e_mule.pdf or
here in http format http://www.bbb.org/texas-panhandle/news ... -strapped/

In a scam known as "credit muling," scammers are taking advantage of cash strapped victims by
fooling them into purchasing new wireless contracts. Scammers take the phones, and leave victims
on the hook for monthly service fees.

How the Scam Works:

A person approaches you about a quick, easy way to make some extra money. He or she will pay
you to purchase several new wireless contracts and hand over the accompanying cell phones. Don't
worry about the contract, this person assures you. You'll be able to cancel it within the allotted time,
typically 15 to 30 days.

When you try to cancel your new contract, however, you realize you've been conned. The companies
require that you first give back the phone. Without it, you are now responsible for the monthly
service fees for the length of the contract.

What are scammers doing with these phones? Scammers turn around and sell the brand new phones
for a profit. After he or she "unlocks" a phone, so it's no longer tied to a particular wireless company,
the scammer can sell it in the U.S. for hundreds of dollars or get thousands for it overseas. ....

Mirrored post from the FTC located here : http://www.consumer.ftc.gov/blog/whoa-t ... dit-muling