REFUND PROGRAM WILL RETURN $125 MILLION TO PEOPLE WHO USED MONEYGRAM TO PAY SCAMMERS
The FTC and the Department of Justice (DOJ) plan to use funds obtained from a settlement with MoneyGram to give money back to people who used the wire transfer service to pay scammers.
For years, many people who lost money to scams sent their payment through a MoneyGram wire transfer. In a 2009 settlement with the FTC, MoneyGram agreed to make changes to make it harder for con-artists to use MoneyGram to defraud consumers. However, a joint law enforcement action by the FTC and DOJ charged that MoneyGram had not done what they agreed to do to reduce fraud. That’s why the FTC and the Department of Justice (DOJ) just announced a new settlement with MoneyGram for $125 million. That money will eventually go back to people who wired – and lost – money to a scammer through MoneyGram starting in 2013. (There will be a date range for eligible refund requests. Exact dates will follow.)
A refund program will be set up soon, and the FTC will post updates about the refund program here. For the latest information about refunds, bookmark this page or sign up to get email updates about this case.