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Western Union settlement: $586 million in refunds

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You probably know that Western Union runs money transfer services in the US and worldwide. What you might not know is that, according to the FTC, Western Union has known for years that scammers were using its system to commit significant fraud. Even when faced with clear evidence that many of its agents were committing fraud, Western Union kept taking people’s money. Probably billions in fraud-related transfers, sent since January 2004. But today, in a global settlement with the FTC and the US Department of Justice, Western Union agreed to return $586 million to people and create a real and strong anti-fraud program.

So, what kind of evidence was Western Union ignoring? Well, says the FTC, from January 2004 to August 2015, the company got more than 550,000 complaints about money transfers made for fraudulent lottery and prizes, family emergency calls, advance-fee loans, online dating and more. There were its own internal reports, which flagged fraud by some of its own agents, including many international agents that paid out fraud-induced transfers from US consumers. And there were warnings from US and international law enforcement about the fraud. And yet, the money kept rolling on through.

Under the settlement, Western Union will return $586 million through a process to be named later. (Watch this space for more information.) The company will have to train and monitor its agents so that people are protected. It won’t be allowed to transmit a money transfer that it knows – or should know – is a fraud. It has to block money transfers to anyone who has a fraud report, make it easier for people to report fraud, give clear warnings to people who are sending money, and refund a fraud-related money transfer if the company didn’t comply with its own anti-fraud procedures.

If you ever wire money, also keep in mind that it’s illegal for a telemarketer to ask you to pay with a money transfer. That’s right: Illegal. Scammers love using money transfer services because once you send the money, it’s gone forever. So, if a telemarketer asks you to wire money, already you know they’re a crook. Don’t wire the money, and then tell the FTC.

Blog Topics: 
Money & Credit

Comments

Bridget, I was scammed of life savings in Dec. 2009. Contacted ic3.gov also EFCC Nigeria and Western Union at the time. This man came on a Christian website and gained confidence. I tried to track this man through the London Embassy.. everywhere possible after that. Will the FTC consider those who have waited longest in sending out settlements? I reported this to Gilardi Co. on Nov. 19, 2017.

I am a victim of fraud. I sent 400 dollars through western union was told I would receive 4000 n never received anything

WU just needs to be shut down. I sent money to my girlfriend (for over 12) years over seas and western union decided to take the matters into their own hands and said she is not allowed to pick up the money I sent her for her medication. WU does not control my money. I do! Now my money is sitting in WU still showing available for pick up but yet it was cancelled??? If it were cancelled it would state " cancelled" online under that transaction. I sent a transaction that had to be cancelled because i spelt the name wrong. I called WU and they told me they couldnt change the name but can cancel the transaction, put the money back into my account and resend. Tell me what the difference is between the first cancellation and the 2nd one? How come money can be instantly put back into my account the first cancellation and the second? This is straight out fraud and discrimination. WU could not give me a reason why she could not pick up the money sent. They are taking matters into their own hands as to where the money goes and who gets it. people like that should be fired. Ill never use that service again. Over 10 years with them.

how will we notified about our claims and when will the refund checks be coming.

how do we get notifed that the claims have been ok d and when will the funds get sent

I need a refund from Western Union in the amount of $5000.00 never received and I paid cash.

I know it may take a year for a refund. However when do you anticipate starting to and out refunds? That way we will know when to start looking .

how will we be notified about our refund checks and when will they be sent out.

I have lost so much in 2016 -2017 to scammers i really my funds to redeem

I still have not heard anything in reference my refund. Wondering when will it be mailed, and will the parcel be certified, signature required, etc. Hoping for an answer.

You can review  FTC.gov/WU and Gilardi & Co. for updates from time to time. Gilardi & Co. is the company the US Department of Justice hired to handle the refund process.

People sent in more than 180,000 Western Union refund claims. Gilardi & Co. is reviewing and evaluating all the claims to determine eligibility. If information is missing from your claim, Gilardi & Co may contact you by mail to explain what is missing and to ask for more information. No payments will be sent until all the claims are reviewed.

I have reported my claim in this lawsuit I'm just wondering when I should expect my refund

I am one of them ben a scam what or whot can I do for to recive all so my monay back

I BEN SEND TWICE FIRST£450
SECOND £250 thay promess to pay me around £1000 and hantill today I don't recive eny why

I filled out the information because I was scammed out of money as well and was wondering when we I will be getting any of the refund? Have they made a set amount and how will I know when that will be sent out?

You can read about the refund process at FTC.gov/WU and Gilardi & Co. . Gilardi & Co. is the company the US Department of Justice hired to manage the refund process.

Gilardi & Co. is reviewing and evaluating all the claims to determine eligibility. If information is missing from your claim, Gilardi & Co may contact you by mail to explain what is missing and to ask for more information. No payments will be sent until all the claims are reviewed.

I was scammed from $800 from trying to buy a puppy from someone and now i am banned from using western union.... i cant get money to family or from them. plus it doesnt help i lost a lot of money.... how do i file a claim?

western union claim jan 2017 I PUT CLAIM IN STILL NO MONEY RECEIVED WELL OVER 2YRS..JERRY

Get information about the status of the refund process at www.FTC.gov/WU.

I got a letter back 2017 asking me to submit my petition, which
I did electronically using my pin # along with the claim # this
took place on 11/20/2017. what is the status

Get information about the status of the refund process at www.FTC.gov/WU.

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