The FTC has sued Walmart, claiming it turned a blind eye to fraudsters using its money transfer services to con folks out of “hundreds of millions of dollars.”
In a lawsuit [PDF] filed Tuesday, the US regulator claimed the superstore giant is “well aware” of telemarketing fraudsters and other scammers convincing victims to part with their hard-earned cash via its services, with the money being funneled to domestic and international crime rings.
Walmart is accused of allowing these fraudulent money transfers to continue, failing to warn people to be on their guard, and failing to adopt policies and train employees on how to prevent these types of hustles.
The FTC wants the courts to order Walmart to return the money to victims and make the corporation cough up penalties for, in the regulator’s view, breaking the FTC Act and Telemarketing and Consumer Fraud and Abuse Prevention Act.
“While scammers used its money transfer services to make off with cash, Walmart looked the other way and pocketed millions in fees,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection. “Consumers have lost hundreds of millions, and the Commission is holding…
