Your BBB® has learned that MoneyGram has agreed to pay a $13 million settlement to resolve a multistate investigation. The investigation involved complaints from consumers who used MoneyGram’s wire transfer service to send money to third parties involved in schemes to defraud consumers. MoneyGram has agreed to pay a total of $13 million to participating states to fund a nationwide consumer restitution program; part to cover the states’ costs and fees associated with the investigation. MoneyGram has agreed to maintain and continue to improve a comprehensive anti-fraud program designed to help detect and prevent consumers from suffering financial losses from fraud-induced wire transfers. The program must include the following:

  • Mandatory documented compliance training for agents.
  • Specific guidelines regarding when an agent’s conduct warrants suspension or termination.
  • Suspension or termination of agents who fail to take reasonable steps to reduce fraud transfers.
  • A telephone hotline and electronic system in which employees and agents can report noncompliance with anti-fraud measures.
  • Mechanisms to evaluate actual fraud rates and consumer losses from fraud-induced money transfers.
  • Continued enhancement of technology solutions, including an Anti-Fraud Alert System (AFAS).

Click Here to Find Out Which Consumers Might Be Eligible for Restitution.