FTC Distributes $115 Million to Victims of MoneyGram Payment Fraud

The US Federal government has repaired the damage of almost 40 thousand victims of fraudulent schemes processed by MoneyGram.

FTC Distributes $115 Million to Victims of MoneyGram Payment Fraud


The press release of the Federal Trade Commission (FTC) contains information that the total amount of funds reimbursed to citizens affected by fraudulent activity is more than $ 115 million.

These funds were paid according to a lawsuit that the US Department of Justice and the Trade Commission filed against MoneyGram in 2018. The company was accused of having no tools at its disposal to counter fraudsters who use the firm’s payment system.

The FTC says the lawsuit accused MoneyGram of violating a 2009 agreement as well as a 2012 agreement with the Department of Justice. These agreements imposed obligations on the company to take measures aimed at preventing fraudsters from accessing the payment system.

According to a press release, the FTC’s agreement with MoneyGram from 2009 obliged the firm to create a fraud prevention program. The company had to investigate, restrict, suspend, and dismiss agents with a high level of suspicious activity.

The FTC claims that MoneyGram, having reliable information about the ongoing fraud, did not react to these facts in any way. The criminals had unhindered access to commit illegal actions in the company’s payment system.

MoneyGram stated that over the past ten years, financial investments of more than $ 800 million have been directed to ensure anti-fraud measures.

The company also claims that the number of consumer complaints about unauthorized activity has consistently decreased over the past eight years. In 2022, this figure was only 0.009% of the more than 100 million transactions processed by MoneyGram.

Most often, elderly people become victims of fraudsters, but the age factor in the issue of virtual fraud is gradually ceasing to be the main one. Last year, the FTC published a report on consumer protection, according to which the number of reports of crimes in cyberspace from citizens aged 18 to 59 years increased by more than 30% in 2022.

As we have reported earlier, MoneyGram Now Allows US Users Exchange Cash for Crypto.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.