Federal Trade Commission Blame Walmart Failure to repeatedly protect customers from being preyed on by fraudsters when using retailers’ remittance services.
On Tuesday, the FTC will impersonate the Internal Revenue Service’s agent, tell people that they are relatives in need of help, and send money using Wal-Mart’s money transfer service.
Samuel Levine, director of the FTC’s Consumer Protection Agency, said in a statement, “Scammers used money transfer services to make cash, but Walmart looks at it differently for millions of dollars. I had a fee in my pocket. “
In a lawsuit filed in the US District Court in Chicago, the FTC said the company had not implemented fraud prevention policies for many years as Wal-Mart’s remittance business expanded.
Even after the policy was introduced, Wal-Mart workers were poorly trained in how to find fraud and, in some cases, accepted cash tips from fraudsters to encourage fraud and helped plan. The FTC said it was doing.
According to the FTC, between 2013 and 2018, Wal-Mart sent or received $ 197 million of payments that were the subject of fraud complaints and asked the court to order Wal-Mart to refund its customers.
Wal-Mart said in a statement that the FTC’s complaint was a “virtually flawed and legally unfounded civil lawsuit” and that the agency denied the retailer “due process to hear directly from the company.” ..
“Wal-Mart defends the company’s strong anti-fraud efforts that helped protect myriad consumers,” the statement added.
Wal-Mart also criticized the FTC for proceeding against the FTC, even after the authorities filed a proceeding against either. Third party company Manage remittances. Wal-Mart said it was trying to shift responsibility for revoking surveillance of a third-party company while under government surveillance.
Wal-Mart enables customers to send money through a vast network of stores in the United States, Mexico and the United Kingdom. Money can be received in-store and is often used by people who do not have a bank account. Wal-Mart charges millions of fees for transfers.
According to the FTC, Wal-Mart is an attractive place to eliminate the possibility of fraud, as it is often possible to receive cash using fake IDs.
The Trade Commission voted 3 to 2 to sue Wal-Mart.
