Scammers want payments that are quick, anonymous, and tough to reverse. In other words, scammers are asking for wire transfers. That’s why money transfer businesses like Walmart need to warn people about fraud risks and train employees to spot scams. And that’s why the FTC is suing Walmart in federal court.
The FTC says Walmart has known for many years that scammers use its locations to get money for grandparent, romance, and other scams, but it didn’t properly warn people or train its employees to prevent fraud. According to the FTC, many Walmart locations didn’t display or give people information about potential fraud, which could have stopped them from sending money to a scammer. The company didn’t consistently post warning signs, put out fraud awareness brochures, or use the required money transfer “send” forms with front-page fraud warnings.
For years, according to the FTC, Walmart even looked the other way when scammers picked up money at stores. The FTC says that a single Walmart employee could process hundreds of thousands of dollars of customer financial transactions a day. But for many years, the company didn’t confirm that employees who handle money transfers had the correct — or current — training before they started processing transactions. Walmart employees processed tens of millions of dollars in fraud-related wire transfers annually for many years, according to the FTC.
That’s why the FTC is asking the court to order Walmart to return money to people who were scammed, pay civil penalties, and stop violating the Telemarketing Sales Rule and FTC Act.
To protect against wire transfer fraud
- Never wire money to anyone who claims to be a from a government agency like the IRS, SSA, or Customs and Border Patrol.
- Don’t wire money to a stranger or someone you haven’t met in person, no matter what reason they give.
- Never wire money to someone who tries to sell you something over the phone. It’s illegal for a telemarketer to ask you to pay with a wire transfer.
If a scammer asked you to wire money, tell the FTC at ReportFraud.ftc.gov.
The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.
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We were scamed out of over 10,000 through walmart about a year ago. We could not get it back as they were using it as fast as they were getting it. Asked walmart how this could happen and all they said was sorry pay the money back and started asking for interest fee right away.
This is great. Wal Mart has always been lax with the Gift Cards as well. Sure they say they print warnings, and they do. If you can read two point type, and a lot of seniors, as well as others with sight impairment cannot... Make them pay!!!
I think somebody should take a look at the internet and big tech there are I believe big organizations that teach people to do just that you see corporations and companies rely on the internet to hire people they rely on the information that's available through the internet through background checks through driver's license checks through information that's available about the candidate they are going to hire that information is easily manipulated by the candidates that intend to get those jobs and use the technology including the internal computer systems for those companies to pocket money on behalf of their organization as well as themselves. I am old school I do not like computers technology and I can't stand the fact that everything my life depends on is tied up in someone else's hands control on the internet. These organizations are professional thieves they are intent on having the funding that it takes to fund their operations that may be no allegations intended at this time however they're very tech savvy and it is the biggest hacking scheme organization it's not just some other country it's just not an individual it's huge that's my belief and I'm sticking to it
This is the type of civic action on behalf of American consumers that reinforces the confidence and necessity of the FTC. As one of MANY government entities, the FTC is one that meets its “mission statement”.
Each and every article that is sent to my e-mail I read in its entirety,
In this Walmart case undeniably Walmart is the middleman, and should be held accountable!
Grateful for all FTC efforts on behalf of consumers whom are ceasly being abused by large and small businesses.
Gratefully Consumer 101
I did get in touch with you when someone who said he was from my cable company and displayed on my phone. It is the first time I was so fooled. I am glad you are suing Walmart. They will not do this again one would hope; not that I think they train the employees to do this. My card companies saved me and refused to let me do it.
Good job. Keep watching.
So how does one get involved in this lawsuit if they were affected?
In reply to So how does one get involved… by Caroline
Walmart moneycard fraud account opened under my name
Yup, I was scammed, a while ago. He messed with my head made promises , told me over and over sgain, that it was the last time, and he'd repay me. Some of these wire transfers were sent from Walmart, here in Ontario. No one even blinked.
Hypocrisy all the way. FTC leaves the Banks off the hook. I personally was scammed reported to FTC the failure of that bank SunTrust in FL to pinpoint this international fraudulent transfer. Failure to act through its insurance policy on behalf of the consumer.