WASHINGTON, D.C. — Walmart has agreed to pay $10 million to resolve Federal Trade Commission (FTC) charges that the company failed to protect consumers from scammers exploiting its in-store money transfer services. The settlement aims to enhance consumer safeguards and prevent future abuse of these services.
The FTC’s initial complaint, filed in 2022, alleged that between 2013 and 2018, Walmart, acting as an agent for MoneyGram, Western Union, and Ria, neglected to adopt effective anti-fraud measures. According to the complaint, the company did not adequately train employees or warn consumers about the risks associated with money transfer fraud, resulting in consumers losing hundreds of millions of dollars.
“Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once it’s sent, it’s gone for good,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “Companies that provide these services must train their employees to comply with the law and work to protect consumers.”
The proposed settlement order introduces strict requirements for Walmart, including prohibiting the company from providing payment services without implementing measures to detect and prevent fraud-induced transfers. Additionally, Walmart is barred from assisting telemarketers or sellers who demand advance payments for loans or credit extensions via cash-to-cash transfers.
This resolution follows years of litigation, during which an amended FTC complaint added telemarketing-related violations. Although a district court twice dismissed the FTC’s Telemarketing Sales Rule claim in 2024, this stipulated order closes the case by imposing a substantial monetary penalty and implementing safeguards to curb consumer harm.
The FTC Commissioners unanimously approved the settlement, and the order was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division.
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