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Walmart Lawsuit: Retail Giant Responds to FTC’s Case Against Unlawful Money Transfers

the retail giant has criticised the lawsuit, claiming it is “unfounded” and “ignores the billions” it has saved customers. The Federal Trade Commission (FTC) is being sued for allegedly allowing millions of dollars in fraudulent money transfer services.

The FTC said in its lawsuit that Walmart allowed scammers to use its money transfer services for years, costing customers money.

According to the agency, Walmart failed to adequately train its staff, failed to warn customers, and employed policies that made it possible for fraudsters to make purchases at its locations.

Walmart, according to the FTC, permitted wire transfer frauds such as “telemarketing schemes including IRS impersonation schemes, relative-in-need “grandparent” scams, sweepstakes scams, and others.”

Additionally, the agency asserts that Walmart was aware that its wire transfer services were being used for fraud and frauds.

“Based on information from fraud databases maintained by MoneyGram, Western Union, and Ria, more than $197 million in payments that were the subject of fraud complaints were sent or received at Walmart from 2013 to 2018 with more than $1.3 billion in related payments also possibly connected to the fraud,” according to a report by the FTC.

In a statement, Samuel Levine, director of the FTC’s Bureau of Consumer Protection, claimed that while scammers utilised its money transfer services to steal funds, Walmart ignored the situation and kept the millions of dollars in fees they collected.

Consumers have lost hundreds of millions, and Walmart is being held liable by the Commission for allowing fraudsters to steal from its clients.


Walmart said in a statement that their flat, low-fee money transfers have saved customers “$6 billion in expenses” and increased competition in the market for the services.

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Walmart claims to have an anti-fraud programme in place that has prevented hundreds of millions of dollars worth of fraudulent transactions from passing through their system, with just a “minuscule” number of transactions actually taking place.

Walmart asserts that the FTC case holds it liable for the wrongdoings of third-party fraudsters, despite efforts to thwart these criminals, and is “factually erroneous and legally unsound.”

The business declared that it will “aggressively” defend the lawsuit since the agency’s threats to its money transfer services are unwarranted given how crucial they are to customers.

In its fight against third-party fraud, Walmart also said it will keep up its policies with its money transfer services.

The FTC wants to impose civil fines on Walmart for the alleged infractions the business has committed and is asking the retailer to refund money to customers.

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Walmart’s stock price was trading at $122.33 as of Wednesday morning premarket hours, down 4 cents or 0.03 per cent.

The company said it will “aggressively” defend the complaint since the agency’s threats against its money transfer services are unjustified given how important they are to customers.

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