In early February, Ohio Attorney General Mike DeWine announced that Ohio was part of a $13 million settlement with MoneyGram Payment Systems Inc. over concerns that consumers used MoneyGram to make payments that were induced by fraud.
The settlement, which includes Ohio, 48 other states, and the District of Columbia, requires MoneyGram to establish and maintain anti-fraud procedures and to pay a total of $13 million, of which up to $9 million will be used to reimburse consumers.
“We know that wire transfers – while a legitimate form of payment – have often been used by con artists in scams,” Attorney General DeWine said. “In this settlement, MoneyGram has agreed to pay millions of dollars to reimburse consumers and take steps to stop fraud before it occurs.”
Under the settlement, MoneyGram has agreed to maintain and continue to improve a comprehensive and robust anti-fraud program designed to help detect and prevent consumers from suffering financial losses as a result of these types of fraud-induced wire transfers.
Of the $13 million MoneyGram has agreed to pay, most will be allocated to fund a nationwide consumer restitution program. According to the settlement terms, an independent third-party settlement administrator will review MoneyGram records and send notices regarding restitution to all consumers who are eligible to receive restitution under this settlement.
Generally, consumers who are eligible for restitution previously filed complaints with MoneyGram between July 1, 2008, and Aug. 31, 2009, regarding fraud-induced transfers sent from the U.S. to foreign countries other than Canada. More information about this settlement is available at the settlement administrator’s website:
www.MoneyGramSettlement.com.
Wire transfers are a preferred payment method of scammers because payment can be sent quickly, and the money is hard to trace. Once the scammer has the money, it is nearly impossible for the consumer to get back.
Scammers use various ploys to encourage consumers to send money via wire transfer. For example, they often claim money is needed to:
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Help a grandchild, other family member, or friend who is in jail;
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Collect lottery or sweepstakes winnings;
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Help someone you’ve not yet met in person such as a deployed service member or new love interest;
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Pay a government agency to cover a debt; or
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Reimburse someone who said that he or she overpaid you.
If you suspect a scam or unfair business practice, report it to the Ohio Attorney General’s Office by calling 800-282-0515 or visiting
www.OhioAttorneyGeneral.gov.