Scammers Targeting Western Union Refunds

CLEVELAND, OH —In February, the Federal Trade Commission and the U.S. Attorney's office announced a reimbursement program for people that had fallen victim to scams that involved wiring money via Western Union. Now scammers are looking to double dip, targeting victims due a refund.

"We’ve heard that people are getting official-looking emails about the Western Union settlement. The thing to know is that you cannot apply for a refund by email. The scam emails we’ve seen ask for information about your Western Union transaction, along with your name and address. These emails are scams. Don’t respond, don’t give any information," said Karen Dodge, a staff attorney in the Midwest Region for the FTC.

Western Union, the wire transfer company, reached a $586 million settlement with the FTC. The company was made to reimburse crime victims who were scammed anytime between Jan. 1, 2004 and Jan. 19, 2017.

To get the refund, victims of scams need to apply via the FTC's website. Detailed steps on how to get a refund were shared by Dodge on Feb. 1. The deadline for applying for a refund is May 31, 2018.

Click here to see the detailed list of application steps.

The only way to get the refund is through the online application process on the FTC's website. Anyone claiming to offer the refund in any other way is perpetrating a scam.

Why Did Western Union Settle?

Scam artists have historically asked their victims to wire money through Western Union. The reason? It's difficult for police to trace where the money ends up.

"For years, many people who lost money to scams sent their payment through a Western Union wire transfer," the federal Department of Justice said in a notice announcing the settlement. "Scammers contacted people and promised prizes, loans, jobs, discounted products or other financial rewards in exchange for money upfront. They also pretended to be family members in need of cash or law enforcement officers demanding payment. The scammers told people to send money through Western Union. No one received the cash, prizes or services they were promised."

Photo from Shutterstock

Patch's Karen Wall contributed to this report