Moneygram is to pay $18 Million

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Paranoia Injector Joined: 09 Sep 2009 Posts: 58

Check out this article about how Money gram has to pay up for wiring money to scammers

Code:

http://abcnews.go.com/Politics/moneygram-pay-18-million-charged-federal-trade-commission/story?id=8871729

Not quite a Newb Joined: 09 Sep 2009 Posts: 44

Quite right. These companies are not helping the business a single bit. However, I hope they don't totally change or close, just make it harder for the lads. AKA More fun for us. Very Happy

Posted: Wed Oct 21, 2009 11:37 am

Here's a link to the official release from the US Federal Trade Commission
http://www.ftc.gov/opa/2009/10/moneygram.shtm

brief summary:
It only applies to transfers made by US customers, to MG agents within the US and Canada. This includes $84m in fraudulent transfers reported by customers to MG, not any other unreported transfers, nor any fraudulent transfers going outside of North America, nor non-US victims.

So it's a tiny drop in the bucket. The $18m is being used to "provide redress to consumers" - I wouldn't be surprised if scammers pick up on this and start using it in their "recovery" formats.

From a baiting viewpoint - why not take advantage of this "crackdown" to avoid using WU and MG, in favor of wire transfers etc...

Posted: Thu Oct 22, 2009 1:20 am

And Money Gram had problems because.

Quote:

The FTC alleged that MoneyGram ignored thousands of complaints about a group of roughly 100 agents in Canada who handled close to $100-million in transfers annually. Roughly 99 Canadian MoneyGram agents had previously been fired or suspended by Western Union over allegations of fraud, court filings alleged, and MoneyGram did few, if any, background checks.

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