The FTC says Walmart failed to act against known scam tactics

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FTC alleges Walmart enabled fraud by failing to act against known scam tactics
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Consumers lost hundreds of millions through in-store money transfer abuse
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New court order mandates stronger anti-fraud measures at Walmart locations
Walmart has agreed to pay $10 million to resolve allegations by the Federal Trade Commission (FTC) that the retail giant turned a blind eye to scammers who exploited its money transfer services to defraud U.S. consumers out of hundreds of millions of dollars.
In a settlement announced Wednesday, the FTC said Walmart failed to take adequate steps to detect and prevent fraud between 2013 and 2018, allowing criminals to use in-store money transfer services including those operated through MoneyGram, Western Union, and Ria to carry out .
The agency claimed Walmart did not implement effective anti-fraud policies, failed to properly train employees, and neglected to warn customers about the risks of fraud when sending money.
Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once its sent, its gone for good, said Christopher Mufarrige, Director of the FTCs Bureau of Consumer Protection, in a news release. Companies that provide these services must train their employees to comply with the law and work to protect consumers.
The case dates back to a June 2022 complaint, which was amended in 2023 to include telemarketing-related violations. Although the FTCs claims under the Telemarketing Sales Rule were twice dismissed by a district court limiting the FTCs ability to seek broader monetary redress Walmart agreed to the $10 million civil judgment as part of a stipulated order that also imposes new restrictions on its money transfer operations.
Terms of the order
Under the terms of the order, Walmart is prohibited from:
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Offering money transfers without timely, effective fraud-prevention protocols;
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Sending or paying out transfers it knows or should know are part of a scam;
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Supporting any telemarketer or seller involved in fraudulent or cash-to-cash transfers;
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Aiding telemarketers who ask consumers to prepay for loans or credit extensions.
The FTC said the order is designed to prevent future abuses and ensure better consumer protection going forward.
Posted: 2025-06-25 14:43:12