Posts Tagged ‘ Moneygram Scam ’
Mad as Hell at Moneygram and the FTC
May 6th, 2010. By AbiK
I’m having a “Network” moment—for those of you old enough to recall the classic cult flick.
I just read another comment from a reader whose father—only YESTERDAY—was the victim of a Moneygram scam. It was your run-of-the-mill scam story. Someone in Canada calls to tell Dad that his son was in a car accident. And, unfortunately, son didn’t buy the rental car insurance. They need $3,000 or they will detain son and he won’t make flight home. They need the money now. Via Moneygram.
Dad sends the cash. Dad then calls son’s cell phone. Dad finds out truth. Dad not happy. Dad files complaint with Moneygram—and gets a bit of a brush off as he tries to glean any info about the situation. Kudos to the Moneygram Customer Service Department (sarcasm dripping from my fingertips). Dad also files a police report. Dad does most everything he’s supposed to. (You can read my post on what to do if you’ve been Moneygram scammed). Only other thing he should do is…
File a complaint with the FTC at ftc.gov or at 1-877-FTC-HELP.
And here’s what ticks me off.
Only last week the FTC began mailing out the over 34,000 redress checks—on average $520 per victim—to close the loop on the Moneygram fine the FTC ordered Moneygram to pay. But keep in mind, the redress checks—and the FTC’s fine—only applied to folks who were victimized during the years 2004-2008. It’s 2010. And it’s still happening.
It was only this past February we’d posted about the $18 million fine that Moneygram was ordered, in October ’09, to cough up to the FTC to help offset the losses—to the tune of $84 million—that victims unwittingly lost in Moneygram scams. That post also included the list of things that the folks at Moneygram were supposed to enact to help stop Moneygram fraud. That list, to refresh your memory, stated that Moneygram was to:
- Not knowingly provide substantial help or support to any sellers or telemarketers that are violating the Telemarketing Sales Rule.
- Implement a comprehensive anti-fraud program, that includes background checks on prospective agents; consumer fraud education and training for Moneygram’s employees; agent monitoring; and disciplinary action for those agents who do not comply with the rules.
- Provide a clear and conspicuous fraud warning on the front of all its money transfer forms.
- Develop and maintain a system for receiving consumer complaints and data, and to provide that information to the FTC upon request.
- Take all reasonable steps to identify agents who are involved in fraud. This means Moneygram must Read the rest of this entry »
What to do if you’ve Lost Money in a Moneygram Scam
February 10th, 2010. By AbiK
Many of you have written in about Moneygram scams. Unfortunately, in the aftermath of Moneygram’s court order to cough up $18 million to the FTC to settle charges of consumer fraud, we’re still receiving numerous accounts from readers who’ve been on the receiving end of a Moneygram scam and who are asking what they should do.
For background, the FTC had sued Moneygram, charging that agents from the money transfer service helped fraudulent telemarketers and con artists who tricked consumers into wiring in excess of $84M within US and Canada. The fraudulent activity occured between 2004 and 2008. The $84M in losses was based on consumer complaints that Moneygram received—and the FTC estimates that the figure is actually larger (i.e., not all victims would have filed a complaint with Moneygram).
First, the court order, from last October, is requiring Moneygram to not only pay the $18 million to the FTC—which Read the rest of this entry »
MoneyGram Scammed Us
November 6th, 2009. By janem
Back in July Pleading Ignorance looked at Moneygram and its involvement, if any, to consumer fraud. We really did plead ignorance because it turns out that Moneygram isn’t the reputable company we believed it to be. Although we weren’t scammed financially as countless unfortunate US consumers were, “The wool got pulled over our eyes”, as the old saying goes.
The FTC recently charged that the second-largest money transfer service in the US allowed its money transfer system to be used by fraudulent telemarketers to bilk consumers out of tens of millions of dollars. And it has to pay the FTC a hefty $18 million to compensate consumers.
That sounds like a lot of dough, but it’s a measly amount to pay back, considering that many consumers likely didn’t report a loss. And a recent FTC survey reported almost 80 percent of all MoneyGram transfers of $1,000 or more from the US to Canada over a four-month period in 2007 were fraud-induced.
And if that’s not enough to make you shake your head, MoneyGram itself received more than 20,600 fraud complaints that cost consumers more than $44 million to cross-border money-transfer frauds between 2004 and 2008 alone. Combine that with losses reported by U.S. consumers on money transfers within the US and that number almost doubles to a whopping $84 million! Cha-ching!
According to the FTC, MoneyGram knew that its network has been used over the last few years by telemarketing scammers to prey on US consumers. And worse, some MoneyGram agents were also scam artists but the money transfer service more or less turned a blind eye. Big mistake: the FTC had MoneyGram in its eagle eye.
This is how the scam works. Con artists prefer to use money transfer services because they can pick up transferred money immediately, the payments are often untraceable, and unknowing consumers can’t do anything about it. Until now, that is.
The FTC has a new Consumer Alert, available on its website, titled “Money Transfers Can Be Risky Business.” And consumers interested in the process of redress administration should call 1-202-326-3755.
What is a Moneygram Scam?
July 17th, 2009. By AbiK
Pleading Ignorance takes a look at Moneygram scams—what are they, what do you need to look out for?
First and foremost, it’s the misfortune of Moneygram—a reputable company—that its name rhymes with “scam”. Moneygram is probably best known for its money transfer and money order services. Western Union is perhaps a more well-known competitor to Moneygram, offering similar services. Regardless, any money order/transfer service can find itself in the middle of a scam operation—so the point here is not to point the finger at Moneygram. It’s to make you aware of those who try to put Moneygram’s services to illegal use—the scammers.
So Moneygram’s got the rhyming mishap, but…
What is a “Moneygram Scam”?
It’s a coined phrase that refers to a Consumer Fraud Scam. In all instances it involves a hapless victim sending money to a would-be relative, lover or bearer of good news (“have you claimed your sweepstakes prize?”). Read the rest of this entry »
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