Western Union Scam

Western Union, the Colorado-based money transfer company, has been embroiled in a multistate investigation into complaints from consumers who used their wire transfer service to send money to third parties involved in schemes to defraud consumers.

The settlement, announced by Attorney General Herbert H. Slatery III, requires Western Union to develop and put into action a comprehensive anti-fraud program designed to help detect and prevent incidents where consumers who have been the victims of fraud use Western Union to wire money to scam artists.

The anti-fraud program includes anti-fraud warnings on send forms, mandatory training and education for Western Union’s agents, heightened anti-fraud procedures, due diligence checks on agents, monitoring of agent activity, and disciplinary action against agents who fail to follow protocols. Western Union has agreed to evaluate and update the program as warranted.

In addition to the anti-fraud program, Western Union has agreed to pay a total of $5 million to the states for their costs and fees. Tennessee will receive approximately $70,018 of this amount. This settlement is part of a larger effort to combat fraud-induced wire transfers, with Western Union earlier this month settling claims with the Federal Trade Commission and the U.S. Department of Justice.

As part of those related settlements, Western Union has agreed to pay $586 million to a fund administered by the Department of Justice to provide refunds to victims of fraud-induced wire transfers nationwide, including Tennessee victims. The settlement with the states and the federal government demonstrates a commitment to holding companies accountable for their role in facilitating fraudulent activities.

The states participating in the settlement include Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.

More information about this settlement is available at https://www.justice.gov/criminal-mlars/remission. The settlement serves as a reminder to consumers to be vigilant when using money transfer services and to report any suspicious activity to the authorities.

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