Federal Trade Commission sues Wal-Mart for promoting US $ 197 million worth of remittance fraud

Washington, June 29: The Federal Trade Commission (FTC) has sued retail giant Wal-Mart for allowing fraudsters to use remittance services that have fled more than $ 197 million in consumers. In the proceedings, the FTC alleged that the company had been blind for years while fraudsters were taking advantage of the inability to properly secure the money transfer services offered at Wal-Mart stores. ..

According to the FTC’s complaint, “the company did not properly train its employees, did not warn customers, and used procedures that allowed fraudsters to withdraw cash at stores.” Wal-Mart will add symbolic robots to warehouses throughout the United States.

“Scammers used money transfer services to make cash, but Wal-Mart took another view and put millions of fees in their pockets,” said the FTC’s Consumer Protection Agency head. One Samuel Levine said:

“Consumers have lost hundreds of millions and the commission has made Wal-Mart responsible for fraudsters to flee customers,” he said in a statement late Tuesday.

The FTC is asking the court to order Wal-Mart to return money to consumers and impose civil penalties for Wal-Mart’s violations. In media reports, Wal-Mart described the proceedings as “virtually flawed and legally unfounded.”

Walmart acts as an agent for multiple money transfer services such as MoneyGram, Ria and Western Union, offering several services under its own brands such as “Walmart2 Walmart” and “Walmart2 World”.

According to complaints, tens of millions of remittances are sent and received each year at Walmart stores and processed by Walmart employees. According to complaints, “Wal-Mart’s practice of turning a blind eye to fraud has had serious consequences for consumers.”

Law enforcement investigations show that law enforcement agencies rely on Walmart remittances as the primary way for fraudsters to receive payments, including IRS spoofing schemes, relative “grandparents” fraud, and telemarketing schemes such as sweepstakes fraud. I have quoted many cases found in. ..

Based on information from fraud databases maintained by MoneyGram, Western Union, and Ria, over $ 197 million of fraud complaints were sent and received at Wal-Mart between 2013 and 2018. Related payments can also exceed $ 1.3 billion. Related to fraud. The FTC has filed a complaint in the US District Court for the Northern District of Illinois.

(The above story was first published in Latest LY on June 29, 2022 at 11:01 AM IST. For news and updates on politics, the world, sports, entertainment and lifestyle, please visit our website. Please log on. Federal Trade Commission sues Wal-Mart for promoting US $ 197 million worth of remittance fraud

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