Walmart will pay $10 million to settle Federal Trade Commission (FTC) allegations that it failed to prevent scammers from using its in-store money transfer services to defraud U.S. consumers out of hundreds of millions between 2013 and 2018.
The FTC claimed Walmart neglected to implement effective anti-fraud measures, inadequately trained employees, and failed to warn customers about potential scams.
“Electronic money transfers are a common tool for scammers, and companies must protect consumers,” said FTC Bureau of Consumer Protection Director Christopher Mufarrige.
A court order also mandates Walmart to enhance fraud detection and prevention efforts, prohibiting the company from processing transfers it knows or avoids knowing are fraudulent.
The settlement, approved 3-0 by the FTC, was filed in the U.S. District Court for the Northern District of Illinois, resolving the case and aiming to prevent future violations.
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