What Is Financial Exploitation?

Fraud is defined as “wrongful or criminal deception intended to result in financial or personal gain.” Young people are particularly vulnerable to financial exploitation. One example is becoming a “money mule”—a person who unknowingly transfers illegal funds on behalf of criminals. Criminals may offer cash or commissions to use your bank account to move money, which can lead to severe legal, financial, and personal consequences.

Impacts of Financial Exploitation

  • Social:
    • Feelings of isolation or being different from peers; potential difficulties accessing the financial system.
  • Financial:
    • May affect your ability to secure credit in the future (such as opening a bank account or obtaining contracts/credit cards).
  • Personal:
    • Increased stress, uncertainty, and anxiety; potential harm to relationships.
  • Legal:
    • A criminal record or even jail time if caught, along with the misuse of funds that could have supported legitimate activities.