Thirty-eight thousand victims in a Moneygram fraud scheme are set to be compensated with $115M in damages.
The FTC claims that the company willingly allowed others to take advantage of its clients.
- Moneygram, one of the most well-known money transfer businesses in the world, agreed with the FTC and the DOJ in 2012 to increase its efforts in stopping scammers from receiving their money using its service.
- The company agreed to implement a fraud prevention program that required the company to investigate, restrict, suspend, and terminate high-fraud agents.
- According to the FTC, Moneygram continued to allow fraudulent actors to scam its users, leading to a $115M fine.
- Now this fine will be distributed to the nearly 40,000 victims that were scammed throughout this period.
- The victims, many of whom are elderly, will receive the full amount they lost.
- This case was handled by the Money Laundering and Asset Recovery Section’s Bank Integrity Unit and the U.S. Attorney’s Office for the Middle District of Pennsylvania.
