Wiring money to someone you don’t know isn’t a good idea.
Now, the federal government is holding wiring companies accountable if they don’t do enough to prevent people from sending money to scammers.
KHON2 explains how victims may be able to get some of their money back.
In 2009, the Federal Trade Commission ordered MoneyGram to do a better job of protecting its customers.
That included conducting timely fraud investigations, as well as conducting extensive training for its employees on how to detect and prevent fraud.
“It is a big problem,” said Hawaii Better Business Bureau Marketplace manager Jason Kama. “Fraud protection is a thing that companies should be interested in because it’s not only protecting their line of business but they’re protecting the consumers that use them.”
Instead, the FTC claims the company didn’t provide adequate training and allowed instances of fraud to continue despite complaints from victims.
Plus the federal government alleges the company’s computerized monitoring system which detects fraud wasn’t working for an 18 month period in 2015 and 2016.
As a result, MoneyGram has agreed to a $125 million settlement.
“I think a big thing and a part of our eight standards of trust is transparency,” said Kama. “In rulings such as this one if something comes down when they’ve been found in violation then that just means that they’re not being transparent to the way that they should be doing business.”
The $125 million will be refunded to scam victims who lost money using MoneyGram starting in 2013.
The process for applying for a refund will be announced in the coming months.
And as always, the Better Business Bureau recommends never wiring money to anyone you don’t know.
If you have a concern or an issue you’d like to share, call 591-0222 Monday through Friday from 11 a.m. to 1 p.m., or send an email to firstname.lastname@example.org.