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
This transcript has been automatically generated and may not be 100% accurate.