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 Post subject: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Wed Oct 21, 2009 8:06 pm 
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Came across this information on another anti-scam web site I belong to and wanted to share it.

For Release: 10/20/2009

MoneyGram to Pay $18 Million to Settle FTC Charges That it Allowed its Money Transfer System To Be Used for Fraud
Company Also Required to Implement Comprehensive Anti-Fraud Program and to Monitor its Agents
MoneyGram International, Inc., the second-largest money transfer service in the United States, will pay $18 million in consumer redress to settle FTC charges that the company allowed its money transfer system to be used by fraudulent telemarketers to bilk U.S. consumers out of tens of millions of dollars. MoneyGram also will be required to implement a comprehensive anti-fraud and agent-monitoring program.

The FTC charged that between 2004 and 2008, MoneyGram agents helped fraudulent telemarketers and other con artists who tricked U.S. consumers into wiring more than $84 million within the United States and to Canada – after these consumers were falsely told they had won a lottery, were hired for a secret shopper program, or were guaranteed loans. The $84 million in losses is based on consumer complaints to MoneyGram – actual consumer losses likely are much higher.

The FTC charged that MoneyGram knew that its system was being used to defraud people but did very little about it, and that in some cases its agents in Canada actually participated in these schemes. According to the FTC’s complaint, MoneyGram knew, or avoided knowing, that about 131 of its more than 1,200 agents accounted for more than 95 percent of the fraud complaints it received in 2008 regarding money transfers to Canada; a similarly small number of agents was responsible for more than 96 percent of all fraud complaints to the company in 2006.

“Money transfer services have a responsibility to make sure their systems don’t become conduits to rip people off,” said David C. Vladeck, Director of the FTC’s Bureau of Consumer Protection. “In this case, MoneyGram not only ducked this responsibility, but also looked the other way while its agents took part in the scams.”

You can read the rest of the story at the link below.


http://www.ftc.gov/opa/2009/10/moneygram.shtm


Here is some useful information in case you decide not to read the rest of the story as it is quit long.

Consumer Education

The FTC has a new Consumer Alert, available on its Web site at http://ftc.gov/bcp/edu/pubs/consumer/alerts/alt034.shtm, titled “Money Transfers Can Be Risky Business.” It includes useful information on how consumers can avoid telemarketing and money transfer fraud, including the following tips. Don’t wire money to:

someone you don’t know, in the U.S. or in a foreign country;
someone claiming to be a relative in the midst of a crisis and who wants to keep the request for money a secret;
someone who says a money transfer is the only form of payment that’s acceptable; or
someone who asks you to deposit a check and send some of the money back.

Consumers interested in the process of redress administration should call 202-326-3755.

_________________
NEVER send money

Media Reporter for ScamVictimsUnited.com

Google is your best online friend. Google everything.
http://www.google.com/

For Romance Love scams
http://romancelovescams.mysubdn.com/forum/index.php


Last edited by Janez on Wed Oct 21, 2009 8:32 pm, edited 1 time in total.

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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Wed Oct 21, 2009 8:26 pm 
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Joined: Mon Mar 31, 2003 10:09 pm
Posts: 2921
We also had this information on our blog yesterday

http://scamvictimsunited.blogspot.com/2 ... aches.html

Now they should do the same thing with Western Union.

Also, I want to know how scam victims go about recovering some of this money that MoneyGram has to pay.

_________________
Shawn Mosch
Co-Founder of http://ScamVictimsUnited.com
There is strength in numbers!

Share your story with the media and educate others about scams! Details here http://scamvictimsunited.com/phpBB2/viewtopic.php?f=28&t=6319
Sign our petition http://www.change.org/actions/view/crea ... s_programs
Follow our blog http://scamvictimsunited.wordpress.com/
Find us on Twitter, Facebook and more http://www.retaggr.com/page/ShawnMosch
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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Sat Oct 31, 2009 2:14 pm 
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WIRE TRANSFERS. MoneyGram International, Inc., the second-largest money transfer service in the U.S., will pay $18 million in consumer redress and implement a comprehensive fraud-monitoring program to settle FTC charges that its agents helped fraudulent telemarketers trick people into wiring more than $84 million. According to the FTC, MoneyGram knew that its system was being used to defraud people but did very little about it. Indeed, the FTC alleged that MoneyGram knew that 131 of its more than 1,200 agents accounted for more than 95 percent of the fraud complaints it received in 2008 about money transfers to Canada. Press release: http://www.ftc.gov/opa/2009/10/moneygram.shtm.

_________________
Shawn Mosch
Co-Founder of http://ScamVictimsUnited.com
There is strength in numbers!

Share your story with the media and educate others about scams! Details here http://scamvictimsunited.com/phpBB2/viewtopic.php?f=28&t=6319
Sign our petition http://www.change.org/actions/view/crea ... s_programs
Follow our blog http://scamvictimsunited.wordpress.com/
Find us on Twitter, Facebook and more http://www.retaggr.com/page/ShawnMosch
_______________________________________________
Has this site helped you?
Buy us a coffee to say thanks ~ http://www.scamvictimsunited.com/donations.htm


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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Wed Dec 09, 2009 6:42 pm 
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Joined: Mon Mar 31, 2003 10:09 pm
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Last week I wrote about MoneyGram and the FTC, and how the FTC has found that MoneyGram knew that it's money transfer system was being used to defraud and scam people out of their money, and did very little about it.

Since then I have been contacted by a consumer rights attorney in California and he would like to bring a claim against MoneyGram to get money back to scammed consumers.

If you know of anyone in California that was scammed by MoneyGram, please have them contact me so that I can get them in touch with this attorney. He is willing to help the victims and work on contingency.

_________________
Shawn Mosch
Co-Founder of http://ScamVictimsUnited.com
There is strength in numbers!

Share your story with the media and educate others about scams! Details here http://scamvictimsunited.com/phpBB2/viewtopic.php?f=28&t=6319
Sign our petition http://www.change.org/actions/view/crea ... s_programs
Follow our blog http://scamvictimsunited.wordpress.com/
Find us on Twitter, Facebook and more http://www.retaggr.com/page/ShawnMosch
_______________________________________________
Has this site helped you?
Buy us a coffee to say thanks ~ http://www.scamvictimsunited.com/donations.htm


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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Wed Jun 02, 2010 6:15 pm 
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Joined: Mon Mar 31, 2003 10:09 pm
Posts: 2921
If you are the victim of a counterfeit cashier's check scam that involved wiring money through MoneyGram please contact me right away. I have a lawyer that would like to speak to you.

_________________
Shawn Mosch
Co-Founder of http://ScamVictimsUnited.com
There is strength in numbers!

Share your story with the media and educate others about scams! Details here http://scamvictimsunited.com/phpBB2/viewtopic.php?f=28&t=6319
Sign our petition http://www.change.org/actions/view/crea ... s_programs
Follow our blog http://scamvictimsunited.wordpress.com/
Find us on Twitter, Facebook and more http://www.retaggr.com/page/ShawnMosch
_______________________________________________
Has this site helped you?
Buy us a coffee to say thanks ~ http://www.scamvictimsunited.com/donations.htm


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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Thu Feb 24, 2011 3:19 pm 
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Joined: Thu Feb 24, 2011 3:02 pm
Posts: 2
And they still have not learned a lesson from this lawsuit! Both Western Union and MoneyGram continue to process wire transfers to scammers. We are attempting to educate our local outlets on questions to ask the individual sending the money (good to live in a relatively small town!).


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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Thu Feb 24, 2011 7:36 pm 
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I don't get it... are they (Western Union, etc) not "aiding and abetting" criminal activity??? How do they keep getting away with this???!!!


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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Thu Feb 24, 2011 8:31 pm 
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Joined: Sat Dec 06, 2008 10:39 pm
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Location: Third Rock from the Sun
Jeddy, I am glad you are taking a pro-active approach to this. Education is the key. There is on more thing you can do and that is to sign Shawn's petition for education and awareness programs. You will find the link in her siggy line. Also tell everyone you know about it. Hopefully we can get more people to sign it. If they do not want their name to show they will have to uncheck the box below their inforamtion.

_________________
NEVER send money

Media Reporter for ScamVictimsUnited.com

Google is your best online friend. Google everything.
http://www.google.com/

For Romance Love scams
http://romancelovescams.mysubdn.com/forum/index.php


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 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Sat Feb 26, 2011 9:01 am 
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Site Admin/Co-Founder

Joined: Mon Mar 31, 2003 10:09 pm
Posts: 2921
The topic of businesses that turn a blind eye to these scams and fraud is one that really makes my blood boil!

_________________
Shawn Mosch
Co-Founder of http://ScamVictimsUnited.com
There is strength in numbers!

Share your story with the media and educate others about scams! Details here http://scamvictimsunited.com/phpBB2/viewtopic.php?f=28&t=6319
Sign our petition http://www.change.org/actions/view/crea ... s_programs
Follow our blog http://scamvictimsunited.wordpress.com/
Find us on Twitter, Facebook and more http://www.retaggr.com/page/ShawnMosch
_______________________________________________
Has this site helped you?
Buy us a coffee to say thanks ~ http://www.scamvictimsunited.com/donations.htm


Top
 Profile  
 
 Post subject: Re: MoneyGram to Pay $18 Million to Settle FTC Charges
PostPosted: Sat Feb 26, 2011 3:32 pm 
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Joined: Mon Apr 25, 2005 8:10 am
Posts: 583
It's even worse when the legal systems turn a blind eye to this... don't you know if someone came up to me and asked me to send $1000 buck to Nigeria "knowing" it's very possible the person sending it is being scammed and that I'm "enabling" this wrong to occur... don't you think I'd be arrested for doing that... being an accessory to a fraudulant activity???!!! Just pisses me off that the legal system in this country does absolutely nothing about it when it comes to financial institutions doing the very same thing! Just goes to show just how much power lobbyist have over our government!!! :twisted:


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