PandaLabs, Panda Security's malware analysis and detection laboratory, issued a security alert that reveals the volume and effectiveness of money mule scams are increasing with the rising rate of unemployment. Additionally, based on PandaLabs' analysis of a sample population of seven large mule networks around the world, North America ranked highest in terms of the success rate in recruiting potential job candidates to participate in illegal money laundering operations.

For example, in October 2008 the success rate for mule operations in North America was on average 66 percent higher than the success rates of mule scams in other regions.

According to PandaLabs, there is a direct relationship between the rising levels of unemployment and money mule recruitment in the US. For example, the US unemployment rate surpassed a 14 year high in October 2008, reaching 6.5 percent. Money mule recruitment and other job related spam during the same period hit an all time high as a percentage of total spam, topping 0.31 percent. This number was up from 0.23 percent the previous month. As shown in the table below, the rate of job related spam is clearly increasing with the rising rate of unemployment.

A money mule is a person who transfers money, usually via the Internet, that has been illegally obtained in one country to another one. The formula for success is most often driven by mass spam campaigns aimed at advertising to potential job seekers the opportunity to make anywhere from hundreds to thousands of dollars a week working from home. As more people lose their jobs and join the job seekers circle, PandaLabs has uncovered evidence that suggests these unemployed individuals may be more inclined to apply to "work from home" offers that are sent from fraudsters.

The following are highlights on PandaLabs' key findings:

* As the unemployment rate increased by over six percent between August and October 2008, from 6.1 to 6.5 percent, the volume of job related spam grew 514 percent during the same period (source: Honeypot Project)
* One specific rebate processing scam generated more than 68,000 targeted email messages in a single day on August 16th (source: Cloud Mark) o "$225+ daily. processing rebates at home for 60"

"The volume of money mule and employment related email scams are increasing with the skyrocketing rate of unemployment," said Ryan Sherstobitoff, chief corporate evangelist for Panda Security. "Furthermore, our research suggests that the new pool of unemployed people may be more inclined to apply to 'work from home' scams. Hence, the worse off the economy, the more people fraudsters are likely to hear back from. When we then factor the improved infrastructures and social engineering skills that are characteristic of today's cybercrime networks we expect to see more money mule plots being executed with a higher degree of success."