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- Walmart coughs up $10 million in money transfer scams lawsuit (irishstar.com)
Walmart to Pay $10 Million in FTC Settlement Over Scam-Tainted Money Transfers
Retail giant Walmart has agreed to a $10 million settlement with the Federal Trade Commission (FTC) following allegations that the company allowed its money transfer services to be used by scammers. The settlement, filed Friday in a Chicago federal court, awaits final approval from U.S. District Judge Manish Shah.
The FTC’s 2022 lawsuit claimed Walmart neglected to prevent fraudsters from using its money transfer services, offered through partners like MoneyGram and Western Union, to collect funds from victims. The FTC alleged scammers employed tactics such as impersonating IRS agents, desperate relatives, and lottery officials.
While a judge dismissed part of the FTC’s case last year, the remaining portion proceeded, prompting Walmart to appeal. This $10 million settlement resolves the ongoing legal dispute.
Walmart has not admitted wrongdoing and has not yet commented publicly.
As part of the agreement, Walmart has pledged to implement stricter safeguards against fraudulent money transfers and to distance itself from telemarketers and vendors suspected of consumer fraud. “Scammers favor wire transfers because they are difficult to trace,” explained FTC consumer protection chief Christopher Mufarrige. “Companies like Walmart have a responsibility to protect consumers from these schemes.”
This settlement comes amidst other legal and reputational challenges for Walmart. The company continues to face scrutiny for its alleged role in the opioid crisis and its labor practices.
Several states have accused Walmart of inadequate oversight of painkiller prescriptions within its pharmacies. Separately, the company faces ongoing wage theft lawsuits from employees alleging unfair compensation practices.
Adding to its woes, Walmart recently dealt with a product recall of FreshRealm’s Chicken Fettuccine Alfredo, following reports of illness and even death linked to the product.
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- Walmart coughs up $10 million in money transfer scams lawsuit (irishstar.com)