CHARLESTON — West Virginia Attorney General Patrick Morrisey has announced a settlement with MoneyGram Payment Systems Inc. to resolve complaints involving wire transfer fraud.
The settlement resolves a multistate investigation focused on complaints from consumers who used MoneyGram’s wire transfer service to send money to third parties involved in schemes to defraud consumers. In addition to West Virginia, 48 states and the District of Columbia were a part of this settlement.
“Scammers find many ways to persuade people to wire them money,” Morrisey said in a statement. “This settlement is another example of our continued commitment to protecting West Virginia consumers.”
The two-part settlement requires MoneyGram to maintain and improve a comprehensive and robust anti-fraud program to help detect and prevent fraudulent wire transfers. Additionally, MoneyGram will pay $13 million to the states to fund a nationwide consumer restitution program, as well as litigation costs and fees. West Virginia will be receiving $20,000 as a result of the settlement.
Morrisey said such schemes can range from the grandparent scam, where a fraudster contacts a grandparent and falsely claims that money must be wired to assist with a grandchild’s medical or legal emergency, to lottery and contest scams, in which consumers are told they have won a large sum of money, but must first wire money to pay required taxes or fees before receiving their winnings.
He suggested that those who receive solicitations requesting money wire transfers should trash the letter, delete the email or hang up the phone. Consumers who are contacted about a grandchild, friend or family member in distress should directly reach out to that person to verify that assistance is needed.