Money back from MoneyGram?

[firefly]

https://www.consumer.ftc.gov/blog/2018/ ... ovdelivery

November 8, 2018
by Karen Dodge
Staff Attorney, Midwest Region, FTC

Money back from MoneyGram?

We’ve all known for a long time that scammers ask people to pay by wiring money. Money wiring companies like MoneyGram and Western Union have also known that scammers have people wire money using their services. In fact, the FTC has sued both companies – which have paid a lot of money to settle those charges – over exactly that issue. When the FTC settled with those companies (MoneyGram in 2009, Western Union in 2017), they also agreed to make changes to protect people from fraud. Except MoneyGram didn’t actually take some of those important steps.

That’s why the FTC and the Department of Justice (DOJ) just announced a new settlement with MoneyGram for $125 million. That money will eventually go back to people who wired – and lost – money to a scammer through MoneyGram starting in 2013. (There will be a date range for eligible refund requests. Exact dates will follow.)

Here’s the story: in 2009, MoneyGram had promised to vet the agents they were hiring, train them to spot fraud, monitor them to watch for fraud-related money transfers, take action if they saw an agent who didn’t try to reduce fraud, and also record fraud complaints and share them with the FTC.

But the FTC’s investigation showed that MoneyGram hadn’t adequately done those things – especially in their large chain outlets. And MoneyGram’s system that should have helped spot and stop fraudsters operating in plain sight? It basically didn’t work for a year and a half, letting millions of dollars in fraud-related transfers go through.

Now, MoneyGram has to put in place more protections that address all the ways it did not follow the order last time. And pay that $125 million to DOJ, which will work with the FTC to set up a refund program to get it back to people.

What should you do to get a refund? Right now, nothing. It might take several months for the refund process to even start. When it does, it will be free to request a refund. And we’ll tell you here and at ftc.gov/MoneyGram what happens next.

[SlapHappy]

https://www.ftc.gov/enforcement/cases-p ... am-refunds

MoneyGram Refunds
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November 2018
REFUND PROGRAM WILL RETURN $125 MILLION TO PEOPLE WHO USED MONEYGRAM TO PAY SCAMMERS

The FTC and the Department of Justice (DOJ) plan to use funds obtained from a settlement with MoneyGram to give money back to people who used the wire transfer service to pay scammers.

For years, many people who lost money to scams sent their payment through a MoneyGram wire transfer. In a 2009 settlement with the FTC, MoneyGram agreed to make changes to make it harder for con-artists to use MoneyGram to defraud consumers. However, a joint law enforcement action by the FTC and DOJ charged that MoneyGram had not done what they agreed to do to reduce fraud. That’s why the FTC and the Department of Justice (DOJ) just announced a new settlement with MoneyGram for $125 million. That money will eventually go back to people who wired – and lost – money to a scammer through MoneyGram starting in 2013. (There will be a date range for eligible refund requests. Exact dates will follow.)

A refund program will be set up soon, and the FTC will post updates about the refund program here. For the latest information about refunds, bookmark this page or sign up to get email updates about this case.

CONSUMER INFORMATION
Money Back from Moneygram?
Using Money Transfer Services
10 Things You Can Do to Avoid Fraud
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