Posts Tagged ‘ moneygram ’

Mad as Hell at Moneygram and the FTC

May 6th, 2010. By AbiK

networkhowardbeale Mad as Hell at Moneygram and the FTC 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.

swiss cheese Mad as Hell at Moneygram and the FTC 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 »

Tags: FTC, moneygram, Moneygram Scam
Posted in Consumer Fraud | 35302 Comments »Mad+as+Hell+at+Moneygram+and+the+FTC2010-05-06+16%3A22%3A41AbiK

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 »

Tags: FTC, moneygram, Moneygram Scam
Posted in Consumer Fraud | 268713 Comments »2010-02-10+18%3A25%3A41AbiK