Security News > 2022 > June > Walmart accused of turning blind eye to transfer fraud totaling millions of dollars

The FTC has sued Walmart, claiming it turned a blind eye to fraudsters using its money transfer services to con folks out of "Hundreds of millions of dollars."

The FTC wants the courts to order Walmart to return the money to victims and make the corporation cough up penalties for, in the regulator's view, breaking the FTC Act and Telemarketing and Consumer Fraud and Abuse Prevention Act.

"While scammers used its money transfer services to make off with cash, Walmart looked the other way and pocketed millions in fees," said Samuel Levine, director of the FTC's Bureau of Consumer Protection.

"Walmart will defend the company's robust anti-fraud efforts that have helped protect countless consumers, all while Walmart has driven down prices and saved consumers an estimated $6 billion in money transfer fees," it continued.

These complaints totaled more than $197 million, according to the FTC, with the average individual consumer fraud loss coming in around $870. However, "These complaints represent only a small percentage of the actual fraud perpetrated through money transfers sent from or received at Walmart locations," according to the lawsuit, which added: "Historically, Walmart has been responsible for more complaints about fraud-induced money transfers than any other agent worldwide."

Walmart charges a fee to send a money transfer.

News URL

https://go.theregister.com/feed/www.theregister.com/2022/06/29/walmart_ftc_money_transfer/