Money Transfer Service Reportedly Allowed Scamming Funds
MoneyGram is sending out settlement checks after consumers used the money wiring service to transfer funds unknowingly to scammers.
By Amanda Taylor, NEWS 9
OKLAHOMA CITY -- It has the makings of a scam. An unexpected check arrives in the mail and it appears to have ties to a money wiring service. Thousands are going out, but NEWS 9's Consumer Watch Team found if you get one do not rip it up.
It's a settlement from MoneyGram after consumers used the money wiring service to transfer funds unknowingly to scammers. The Federal Trade Commission says MoneyGram knew its system was being used to defraud people and looked the other way, and in some cases its agents in Canada actually participated in these schemes.
That's why MoneyGram has settled for $18 million. Checks are being sent out from the FTC for people who have complained of losing money between 2004 to 2008.
Consumers who were tricked into wiring funds by fraudulent telemarketers and didn't file complaints might still be eligible for proceeds from the settlement. Consumers who have questions about the settlement can call the claims administrator at 1-877-740-6993.