FTC Sues Walmart For Allowing Scammers Use Money-Transfer Services

  • The Federal Trade Commission has sued Walmart Inc WMT, alleging that the retail giant allowed its money-transfer services to facilitate fraud.
  • According to the complaint, the company did not properly train its employees, failed to warn customers, and used procedures that allowed fraudsters to cash out at its stores.
  • The financial services offered by Walmart include money transfers, credit cards, reloadable debit cards, check cashing, and bill payments.
  • "Consumers have lost hundreds of millions, and the Commission is holding Walmart accountable for letting fraudsters fleece its customers," said FTC.
  • In response to the lawsuit, Walmart called the suit "factually misguided and legally flawed."
  • Money transfers are used by fraudsters as they are nearly impossible to retrieve after the money has been picked up.
  • Price Action: WMT shares are trading higher by 0.26% at $122.69 in premarket on the last check Wednesday.
  • Photo Via Company

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