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SALT LAKE CITY — The Utah Division of Consumer Protection joined a multistate agreement with Western Union in an effort to combat fraud perpetrated through the money transfer service.
The agency signed on to a $5 million settlement with Western Union, resolving a national investigation regarding customer complaints about the company’s wire transfer service being involved in schemes to defraud consumers. The settlement agreement was signed by Utah along with 48 other states and the District of Columbia.
In a separate but related court case, Western Union settled with the U.S. Federal Trade Commission and U.S. Department of Justice for $586 million over claims related to fraud-induced transfers. According to data obtained from Western Union, 3,790 Utah consumers filed complaints alleging over $4.6 million in fraudulent wire transfers. Officials said those Utah consumers and others might be eligible for restitution through the $586 million settlement fund with the U.S. Department of Justice.
“Consumer scams using money wire transfers have been targeting Utah citizens for years with no hope for refunds,” said Francine Giani, executive director of the state Commerce Department. “These Western Union settlement agreements are great news for Utah consumers who lost their hard-earned money to fraudulent schemes where there was no viable recourse.”
Criminals have used the business reputation and wire services of Western Union to conduct schemes across the country, she added.
“In addition to paying Utah consumers for lost funds, Western Union pledged to tighten money transfer controls which will help protect the public at large from future fraud,” said Daniel O’Bannon, Consumer Protection Division director.
Terms of the FTC settlement require Western Union to develop and implement a comprehensive anti-fraud program designed to help detect and prevent incidents of consumer fraud in which unwitting victims wire money to scam artists, he said.
The anti-fraud program includes warnings on forms consumers use to wire money; mandatory and appropriate training and education for Western Union’s agents about fraud-induced wire transfers; heightened anti-fraud procedures when warranted by circumstances such as increased fraud complaints; due diligence checks on Western Union agents who process money transfers; monitoring of Western Union agent activity related to prevention of fraud-induced money transfers; and prompt and appropriate disciplinary action against Western Union agents who fail to follow required protocols concerning anti-fraud measures.
Consumers can visit the U.S. Justice Department website for more information about the Western Union restitution agreement.
