“We are quite confident that we can back up every allegation with hard evidence.”
DAVID VLADEK
Published 01:50, October the 21st, 2009
MoneyGram to pay $18M in deal over fraud claims
MoneyGram International will pay $18 million to settle charges it turned a blind eye to fraud perpetrated by people who used the money transfer company to receive funds, the Federal Trade Commission said yesterday.
The FTC said that, between 2004 and 2008, MoneyGram employees worked with “fraudulent telemarketers and other con artists” who scammed U.S. consumers out of more than $84 million, the FTC said in a statement.
MoneyGram denied any wrongdoing, but said it would beef up its anti-fraud efforts.
“While we don’t agree with the FTC’s allegations regarding our fraud prevention in the past, we can agree on fraud prevention today and in the future,” said Pamela Patsley, MoneyGram chairman, in a statement.
“What we are announcing today with the FTC is our commitment to enhance our already comprehensive efforts to combat fraud,” she added.
Told of Patsley’s comment, the FTC’s David Vladek disagreed vehemently.
Rival lender suspected
Vladek said there was a “high volume of complaints” against Western Union Co. for similar issues, but declined to say if they were under investigation. A Canadian law enforcement official, Inspector Kerry Petryshyn of the Royal Canadian Mounted Police, said they had no probe of Western Union under way.
REUTERS