Walmart to pay $10 million in money transfer fraud settlement

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Walmart will be required to pay $10 million in to settle Federal Trade Commission (FTC) allegations that it allowed scammers to use its in-store money transfer services to defraud consumers out of hundreds of millions of dollars across the United States.

The FTC announced the news earlier this week following a years-long investigation by the agency.

Walmart will pay $10 million in money transfer fraud settlement

What they're saying:

The FTC said Walmart will pay $10 million to settle Federal Trade Commission charges that it "turned a blind eye to scammers who used its in-store money transfer services to take hundreds of millions of dollars from U.S. consumers."

Walmart Supercenter cart sits outside of the store on February 20, 2024, in Hallandale Beach, Florida. (Credit: Joe Raedle/Getty Images)

"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, the 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."

Dig deeper:

In addition to imposing the $10 million judgment, the order also prohibits Walmart from providing money transfer services without taking timely action to effectively detect and prevent fraud-induced money transfers, sending or paying out any money transfer that it knows, or consciously avoids knowing, is a fraud-induced money transfer and substantially assisting or supporting any seller or telemarketer that it knows, or consciously avoids knowing, is accepting a cash-to-cash money transfer as payment for goods, services or charitable contributions sought through telemarketing. 

Investigation by FTC

The backstory:

The FTC’s June 2022 complaint alleged that between 2013 and 2018, Walmart allowed its money transfer services to be used by scammers who defrauded consumers out of hundreds of millions of dollars. 

"Walmart failed to implement effective anti-fraud policies and procedures, did not properly train its employees, and failed to warn customers about potential fraud related to money transfers," according to the complaint. 

EARLIER: Scammers are impersonating FTC employees to steal money, agency warns

In June 2023, the FTC filed an amended complaint adding further details related to the company’s alleged telemarketing violations. In July 2024, the district court dismissed the Commission’s Telemarketing Sales Rule claim for the second time, presenting a significant hurdle for the Commission to obtain monetary relief for consumers in the litigation. In November 2024, the Seventh Circuit Court of Appeals granted Walmart permission to appeal certain rulings by the district court.

The stipulated order announced on June 20 resolved the FTC’s case against Walmart and is intended to ensure the company does not engage in similar alleged conduct in the future. 

More information about the settlement and the final order is available on the FTC’s official website.