credit mule

credit +‎ mule

credit mule (plural credit mules)

1. A victim of fraud persuaded to use his own name and information to obtain an expensive item with credit contract attached, such as a smartphone. The victim, or "mule," is paid when he gives the item to the fraudster, and he is assured the contract will be cancelled, but it is not. Thus, the victim acquires a debt while the fraudster can sell the item at a large profit.

• Credit Muling Presents Unique Fraud Detection Challenges Credit Risk Insights, LexisNexis.
• Credit muling Credit Card Glossary: Terms and Definitions, CreditCards.com.

• multicreed