National wire transfer provider Western Union has agreed to pay $5 million, a portion of which will go to Massachusetts, to resolve a multistate investigation into use of its services to facilitate fraudulent money transfer scams, Attorney General Maura Healey announced today.
In a related federal settlement, the company has also agreed to pay $586 million, which includes refunds to Massachusetts victims.
“In these scams, fraudsters using Western Union’s services convinced consumers to wire money to remote locations, often outside the country,” AG Healey said in a statement. “Western Union took insufficient steps to identify and block these fraudulent transfers. While scam artists use creative and convincing tactics, consumers should always be cautious of any requests for immediate transfers of money, even if they appear to come from people they know.”
Massachusetts will receive more than $200,000 from the settlement.
The settlements require Western Union to take additional steps to help detect and prevent incidents of fraud, giving the AG’s office the authority to enforce certain portions of the federal agreement including:
- Prohibiting the processing of money transfers when Western Union knows or reasonably should know that the transfers are induced by fraud or through a telemarketing scheme;
- Requiring the company take steps to protect consumers, including interdiction, fraud warnings, and reimbursement of funds in certain circumstances; and
- Requiring the company to perform due diligence, monitor agents (including background checks and mandatory training), and investigate and discipline agents regarding their fraud prevention performance.
