Criminals have been able to get individuals to wire funds to them for years. It is an old scam that still works. One of the companies that have been used by criminals in the past for wire fraud is MoneyGram, which was sued by the Federal Trade Commission (FTC) in 2009 and required to put measures in place to prevent wire fraud.
According to a press release by the FTC and the Department of Justice, MoneyGram has agreed to settle with the DOJ and FTC for $125 million for failing to implement measures to prevent people from being victims of wire fraud. The FTC says that MoneyGram failed to adequately vet their agents, train them to spot fraud, record fraud complaints and monitor for fraud, which led to millions of dollars of fraudulent transfers to go through its system.
In addition to the settlement of $125 million, MoneyGram will put additional measures in place to prevent fraud. The DOJ and FTC will work together to come up with a process of refunding individuals who have been the victim of fraud through MoneyGram.
- If you have been the victim of wire fraud through MoneyGram, you may be entitled to a refund—go to ftc.gov/MoneyGram to get more information on the refund process
- Continue to be cautious about paying anyone through a wire transfer request via telephone or email
- Independently verify any wire transfer through another means other than email or a cold call
Wire fraud continues to be a money maker for criminals. Be aware of the fraud and protect yourself from being a victim.