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

June 27, 2014

GREENVILLE, SC (June 27, 2014) – 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. They tell you not to worry about the contract and assure you that you will 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? They 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. 

Like many scams, "credit muling" cons are typically targeted at those in need of money. Scammers cruise colleges and even homeless shelters in search of potential victims...but anyone can be susceptible.    

What to know about "credit mule" scams:

  • Read your contract. Yes, the fine print is long and tedious, but be sure you know exactly what you are committing to before you sign.  
  • If it sounds too good to be true... It probably is. If getting paid a couple hundred dollars just to take out a wireless contract sounds too easy, that's because it's a scam. 
  • Know the consequences of bad credit. Scammers frequently prey on students who may not know the consequences of bad credit. An unpaid cell phone bill will be sent to a collections agency, and this could make it hard to get a loan, a job or even housing later.

For More Information
Read more about credit mules on the Federal Trade Commission's blog. To find out more about scams or to report one, check out BBB Scam Stopper.

About the Better Business Bureau (BBB):
For more than 100 years, Better Business Bureau has been helping people find businesses, brands and charities they can trust. In 2013, people turned to BBB more than 132 million times for BBB Business Reviews on more than 4.5 million businesses and Charity Reports on 11,000 charities, all available for free at The Council of Better Business Bureaus is the umbrella organization for 112 local, independent BBBs across North America, as well as home to its national programs on dispute resolution, advertising review, and industry self-regulation. BBB Serving the Upstate of South Carolina was founded in 1982 and serves 10 counties, including Abbeville, Anderson, Cherokee, Greenville, Greenwood, Laurens, Oconee, Pickens, Spartanburg and Union. Businesses that earn BBB Accreditation contractually agree and adhere to the organization's high standards of ethical business behavior. BBB is the preeminent resource to turn to for objective, unbiased information on businesses and charities. For more information, call (864) 242-5052 or visit