FTC Sues Walmart For Allowing Scammers Use Money-Transfer Services

The Federal Trade Commission has sued Walmart Inc WMT, alleging that the retail giant allowed its money-transfer services to facilitate fraud.
According to the complaint, the company did not properly train its employees, failed to warn customers, and used procedures that allowed fraudsters to cash out at its stores.
The financial services offered by Walmart include money transfers, credit cards, reloadable debit cards, check cashing, and bill payments.
"Consumers have lost hundreds of millions, and the Commission is holding Walmart accountable for letting fraudsters fleece its customers," said FTC.
In response to the lawsuit, Walmart called the suit "factually misguided and legally flawed."
Money transfers are used by fraudsters as they are nearly impossible to retrieve after the money has been picked up.
Price Action: WMT shares are trading higher by 0.26% at $122.69 in premarket on the last check Wednesday.
Photo Via Company

Overview Rating:

Good

100

0100