“To the contrary, Walmart even adopted practices that made it easier for scammers to obtain the fruits of their frauds through money transfers at its stores.”Īlthough Walmart’s motion to dismiss offered several examples of its anti-fraud procedures, the FTC alleged the company in 2015 instructed workers to complete transactions even if they “displayed obvious red flags of fraud.” The FTC said Walmart first instituted the policy without service providers knowing and then did so over objections from MoneyGram. “Despite these complaints and court orders against its money transfer service providers, Walmart, which is obligated to maintain its own anti-fraud program, still did not take basic, critical steps and necessary precautions to prevent fraud-induced money transfers from being sent and received at its stores,” the FTC said. The FTC entered a similar order against Western Union in 2017 - again with a copy served to Walmart - and modified its MoneyGram order in 2018. In its new filing, the FTC alleged Walmart has known since 2010 that MoneyGram’s anti-fraud program was deficient, including through notification of a court ordered process reform process. Postal Service - “overwhelmingly used for legitimate services even if scammers sometimes take advantage” - and said the scammers are the criminals, not the service provider. The world’s largest retailer took credit for saving customers billions in fees by making the market competitive and further positioned itself like Western Union or the U.S. District Judge Manish Shah, in which Walmart said the FTC’s complaint is rooted in “the criminal actions of completely unrelated third-party fraudsters,” ignores Walmart’s “extensive efforts” to thwart such conduct and also alleging the FTC lacks “constitutional or statutory authority to bring its lawsuit.”Īt issue are Walmart’s money-transfer services offered for more than a decade through MoneyGram, Ria Financial Services and Western Union. 5, FTC lawyers filed a motion opposing Walmart’s Aug. The Federal Trade Commission is pushing back on Walmart’s efforts to convince a federal judge to dismiss a lawsuit the retailer says is “an egregious” attempt to hold the company liable for the actions of scam artists who committed fraud using the company’s money wiring service.
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