MoneyGram Fraud Victims Get $115m in Compensation


Tens of thousands of victims of fraud schemes that used money transfer service MoneyGram are to be compensated to the tune of $115m, according to the US authorities.

Nearly 40,000 consumers will be handed their share of the funds, which were forfeited by MoneyGram in 2018 as part of a deferred prosecution agreement (DPA).

That action was led by the FTC and the Department of Justice (DoJ). It charged that the money transfer giant had violated a previous FTC settlement from 2012 and a DoJ agreement three years later, in which MoneyGram had agreed to crack down on scammers using its service to receive victims’ money.

Specifically, MoneyGram had agreed to put in place a fraud prevention program which required the firm to promptly “investigate, restrict, suspend and terminate high-fraud agents.”

The FTC claimed MoneyGram was aware following the settlement of continued fraud by agents on its payment network, but turned a blind eye.

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