Money Gram Fined $100 Million for Wire Fraud
Summary: The U.S. Justice Department announced that MoneyGram International agreed to pay a $100 million fine and admit to criminally aiding and abetting wire fraud and failing to maintain an effective anti-money laundering program. The DOJ found that MoneyGram's fraud department identified agents believed to be involved in scams as early as 2003, but termination recommendations were rarely accepted because they were not approved by sales executives, and customer-reported fraud in the U.S. and Canada grew from 1,575 instances in 2004 to 19,614 in 2008.
Key Takeaway: Customers reported at least $100 million in fraud from 2004 through 2009 while the company's own fraud team was being overruled by sales, and prosecutors have charged 28 former MoneyGram agents to date.
Read the original at Krebs on Security ↗
- Topics
- Fraud & Scams
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