Tens of thousands of victims of fraud schemes using money transfer service MoneyGram will be paid $115 million in damages, according to US authorities.
Approximately 40,000 consumers will be handed a portion of funds confiscated by MoneyGram as part of a Deferred Prosecution Agreement (DPA) in 2018.
The action was led by the FTC and the Department of Justice (DoJ). The company accused MoneyGram of violating an earlier FTC settlement from 2012 and a DOJ agreement three years later.
Specifically, MoneyGram had agreed to put in place an anti-fraud program that required the company to “investigate, restrict, suspend, and terminate abusive agents.”
The FTC claimed that MoneyGram was aware of ongoing fraud settlements by agents in its payments network, but turned a blind eye.
Samuel Levine, director of the FTC’s Office of Consumer Protection, said:
“The FTC is pleased to work with our law enforcement partners to provide reimbursement to claimants. We expect other companies that promote fraud and ignore FTC orders to face similar consequences. is needed.”
Victims are fully reimbursed for what they have lost, with the United States Postal Inspection Service (USPIS) managing the process.
The USPIS Philadelphia Division office in Harrisburg, Pennsylvania was heavily involved in the investigation of this case, and the Money Laundering and Asset Recovery Division’s Bank Integrity Division and the US Attorney’s Office for the Central District of Pennsylvania have prosecuted the case. bottom.
Editorial Credit Icon Image: chrisdorney / Shutterstock.com
