February 11, 2016
Carson City, NV – Today, Nevada Attorney General Adam Paul Laxalt announced a settlement with Dallas-based MoneyGram Payment Systems, Inc. The settlement resolves a multistate investigation that focused on the complaints of defrauded consumers who used MoneyGram’s wire transfer service to send money to third parties involved in fraudulent schemes. In addition to Nevada, 48 states and the District of Columbia participated in this settlement.
“Transferring funds can leave consumers vulnerable to third party fraudsters looking to fleece victims out of their hard-earned dollars,” said Laxalt. “This settlement establishes improvements to their anti-fraud program, so that consumers can safely transfer funds and avoid future financial losses.”
As a result of the settlement, MoneyGram has agreed to maintain and improve a robust anti-fraud program designed to help detect fraud and prevent consumers from suffering financial losses as a result of fraud-induced wire transfers. The program must be documented in writing and, at a minimum, include features such as a hotline system, mandatory compliance training for agents, and suspension or termination of agents who fail to take reasonable steps to reduce fraud-induced money transfers.
Additionally, MoneyGram has agreed to pay a total of $13 million to participating states to fund a nationwide consumer restitution program and cover the states’ costs and fees. The settlement also provides for an independent third-party settlement administrator to review MoneyGram records and send notices to all consumers eligible to receive restitution under this settlement. Generally, consumers eligible for restitution filed complaints with MoneyGram between July 1, 2008 and August 31, 2009, regarding fraud-induced transfers sent from the U.S. to foreign countries other than Canada.
In addition to Nevada, participants in the settlement include: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia.
Chief Deputy Attorney General JoAnn Gibbs of the Attorney General’s Bureau of Consumer Protection represented Nevada in this settlement. For more information on this settlement, visit the Settlement Administrator’s website at www.MoneyGramSettlement.com.