MoneyGram to pay $18M fraud settlement for helping defraud consumers

[PinkOwl]

Source: ABC News

By BRIAN HARTMAN
Oct. 20, 2009—

The second-largest money transfer service in the United States today agreed to pay $18 million to settle federal charges that it let consumers be duped into wiring tens of millions of dollars to con artists.

The Federal Trade Commission had charged that MoneyGram and its agents helped bogus telemarketers defraud consumers out of more than $84 million.

Most victims were tricked into believing they had won a lottery or some other prize that required payment of a collection fee. Others were told to send cash with the promise it would result in easy-credit loans or work.

From 2004 to 2008, federal officials say, MoneyGram ignored 41,103 fraud complaints from consumers who had lost at least $85 million to scams using its service. Law enforcement agencies also had repeatedly warned MoneyGram it had a fraud problem. But the company didn't just turn a blind eye, officials charge. They say MoneyGram agents also were in on the scams.

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

---

How sad MoneyGram must be. The article says that the victims lost $85 million due to MoneyGram's actions...but MoneyGram settles for 18 million. Poor megacompany!

[marmar]

1. Is there ANY company involved in the business of money that can operate ethically?

nt

[virgogal]

3. I've had good luck with local credit unions.

[XemaSab]

4. Money = root of all evil

x(

[Psephos]

5. Actually, the Biblical quote is: "Love of money is the root of all evil."

I have to agree with the Bible here.

[quiet.american]

6. Have started wondering the same -- everybody's scamming! nt

[virgogal]

2. They ignored over 41,000 fraud complaints? The fine should be tripled.

That said,I never even heard of the company.

[NJCher]

7. they didn't ignore me

I used a moneygram to send some cash and had to go to two different locations before I could get it out.

I complained and the company sent me the amount I spent for the moneygram. They did it right away, too.


Cher

[earcandle]

8. They need to be prosecuted for their crimes and pay settlements.

[Hubert Flottz]

9. $85 million - $18 million = $67 million

The Federal Trade Commission needs to go back to the third grade...

Edit...I guess we need to rethink that old saying..."Crime Never Pays"