FTC sues Walmart over scammers' use of money transfer services

The Federal Trade Commission has filed a lawsuit against Walmart, claiming the company allowed scammers to use its money transfer services to steal hundreds of millions of dollars from customers.
1:38 | 06/29/22

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Transcript for FTC sues Walmart over scammers' use of money transfer services
BEEN, GIO. THANK YOU. ROBIN. >>> NOW TO THE FEDERAL LAWSUIT AGAINST WALMART. THE FEDERAL TRADE COMMISSION CLAIMING THE COMPANY ALLOWED SCAMMERS TO USE THE RETAILERS' MONEY TRANSFER SERVICES TO STEAL HUNDREDS OF MILLIONS OF DOLLARS FROM CUSTOMERS. OUR CHIEF BUSINESS CORRESPONDENT REBECCA JARVIS IS HERE, AND, REBECCA, WALMART IS DENYING THE ACCUSATIONS. >> Reporter: THEY ARE, ROBIN. THE FTC CLAIMS FOR YEARS WALMART FAILED TO SECURE ITS MONEY TRANSFER SERVICES BY NOT PROPERLY TRAINING EMPLOYEES AND FAILING TO ALERT CUSTOMERS ABOUT A RISE IN MONEY TRANSFER FRAUD. IN TURN THE FTC SAYS SCAMMERS SWINDLED WALMART CUSTOMERS OUT OF HUNDREDS OF MILLIONS OF DOLLARS. HERE'S HOW IT HAPPENED ACCORDING TO THE FTC, WALMART OFFERS MONEY TRANSFER SERVICES THROUGH ITS SCORES BUT THE AGENCY SAYS WALMART TURNED A BLIND EYE FOR YEARS FAILING TO PROTECT CUSTOMERS AS THEY FELL PREY TO COMMON SCHEMES LIKE SCAMMERS IMPERSONATING LONG LOST RELATIVES OR THE IRS. WALMART WHICH EARNS MILLIONS IN FEES ON MONEY TRANSFERS, DID NOT WARN CUSTOMERS OF THE POTENTIAL FRAUD ACCORDING TO THE FTC AND NOW THE AGENCY IS ASKING A COURT TO ORDER THE RETAIL GIANT TO PAY BACK CONSUMERS AND IMPOSE CIVIL PENALTIES. NOW, WALMART SAYS THE LAWSUIT IS FACTUALLY FLAWED AND LEGALLY BASELESS AND THE COMPANY'S ANTI-FRAUD EFFORTS ARE ROBUST AND HAVE HELPED TO PROTECT CONSUMERS. ROBIN, THE BOTTOM LINE IS NO MATTER WHAT THE OUTCOME OF THIS IS, THE MOST IMPORTANT TAKEAWAY FOR OUR VIEWERS IS TO TRIPLE CHECK BEFORE YOU INITIATE A MONEY TRANSFER, ONE REASON THESE TRA TRANSACTIONS ARE SO BELOVED BY FRAUDSTERS IS THAT THE CASH IS NEARLY IMPOSSIBLE TO RECOVER ONCE IT'S BEEN SENT, ROBIN. >> ALWAYS SO IMPORTANT HOW YOU

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