The Federal Trade Commission is suing Walmart for watching while scammers defrauded customers of more than $197 million, the agency claimed in a expression on Tuesday. It is seeking a court order that would force Walmart to return money to customers in addition to civil fines.
In a brief response, Walmart described the lawsuit as “factually incorrect and legally unfounded.”
Money transfer fraud is common and can involve anything promises to share an inheritance to Lying about a family emergency. They happen almost everywhere from cell, Venmo and cash app to Crypto ATMs and popular dating apps.
In this case, the FTC alleges that Walmart “turned a blind eye to fraud” that occurred at its stores. The retail giant offers money transfer services under its own brand names such as Walmart2Walmart. Between 2013 and 2018, the FTC alleges that Walmart failed to protect its customers in a number of ways, including failing to train its employees and “using procedures that allowed fraudsters to withdraw money from its stores,” the company said Agency.
The lawsuit follows previous FTC fraud allegations against two of Walmart’s money transfer partners. MoneyGram and Western Union; both have reached $100 million in settlements with the agency in recent years.
FTC hammers Walmart over years of ‘facilitating’ money transfer scams – TechCrunch Source link FTC hammers Walmart over years of ‘facilitating’ money transfer scams – TechCrunch