Americans lost $115 million due to MoneyGram fraud

The United States Postal Inspection Service (USPIS) announced on Feb. 10 that it had paid more than $115 million to victims in connection with MoneyGram scams. All victims were compensated for the full amount of damage. This is stated on the site. US Department of Justice.

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“The $115,8 million payment to nearly 40 victims, each of whom received full compensatory damages, demonstrates the Department of Justice's commitment to rescuing victims of fraud,” said Assistant Attorney General Kenneth Polite Jr. “This is an example of how the department will use every tool at its disposal to ensure justice for victims.”

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MoneyGram originally entered into a Deferred Prosecution Agreement (DPA) with the Department of Justice in 2012. The company was accused of willfully failing to comply with an anti-money laundering program and of aiding and abetting fraud schemes that typically targeted the elderly and other vulnerable citizens.

In November 2018, MoneyGram agreed to extend the DPA, implemented additional enhanced compliance obligations, and forfeited $125 million, representing the volume of consumer fraud transactions it processed during the duration of the DPA. USPIS uses these confiscated funds to compensate fraud victims as part of the process. MoneyGram completed the DPA in May 2021.

The scam, usually aimed at the elderly and other vulnerable individuals, was carried out by falsely promising victims that they would receive large cash prizes, various high-value goods at greatly reduced prices, or employment as "mystery shoppers".

In addition, the scammers called the victims under the guise of a relative and claimed that they had problems and urgently needed money.

In each case, the perpetrators required the victims to send them an advance through the MoneyGram money transfer system in order to receive the promised product or service. The victims never received what was promised.

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“This $115 million settlement provides a measure of financial justice for the many victims who were harmed by fraudsters,” explained Inspector-in-Charge Christopher Nielsen of the USPIS Philadelphia Field Office. “The U.S. Postal Inspection Service is proud to be part of this exemplary teamwork.”

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