MoneyGram Settlement May Mean Payback For PA Fraud Victims

By ERIC KIEFER and JUSTIN HEINZE

Have you recently been ripped off in a fraud scheme involving a MoneyGram wire transfer?

There may be a chance that you are eligible to be paid back in full.

Pennsylvania is now one of 49 states (and the District of Columbia) to agree to a $13 million settlement with MoneyGram.

Phoenixville police recently warned about the scam. There have been several confirmed cases in the area, including Chesterbrook.

The settlement came after a multi-state investigation that focused on complaints from persons who wired money to third parties engaged in fraud using MoneyGram’s wire transfer service, according to the Pennsylvania Office of Attorney General.

The Dallas-based company has agreed to pay the 49 participating states and the District of Columbia a total of $13 million, about $9 million of which will be used to pay back the victims, the AG stated.

Consumers who previously filed complaints with MoneyGram between July 1, 2008 and August 31, 2009, may be eligible for restitution, the AG stated.

“We anticipate you will receive a full refund based on the transfer amounts provided by you in your complaint to MoneyGram,” the settlement administrator’s website states. “However, depending on the number of claims filed and the total dollar claimed, it may be necessary to provide you with a reduced amount.”

Customers who have moved or didn’t use their current mailing address at the time of the alleged fraud cases can contact the settlement administrator atinfo@moneygramsettlement.com.

Under the settlement, MoneyGram has agreed to maintain and improve a “comprehensive, robust anti-fraud program” designed to help detect bogus solicitations and prevent financial loss as a result of fraud-induced wire transfers.

More information about the settlement is available here.

Participating states include: Alabama, Alaska, Arizona, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming and the District of Columbia.

SCAM EXAMPLES

According to the settlement, some examples of scams perpetrated with the use of MoneyGram cards include:

• Grandparent scheme – a fraudster calls a grandparent claiming that money is urgently needed and must be wired to assist with a grandchild’s emergency (e.g. emergency medical assistance, travel money or bail money)
• Foreign lottery – a fraudster tells the consumer that she has won a lottery or contest but must wire money to cover “fee” “taxes” or other charges
• Romance scam – a fraudster creates a fake online profile using someone else’s picture –sometimes even using stolen pictures of real military personnel. Once they make contact with a prospective victim, they quickly profess love and proceed to ask that money be wired to them– because their wallet was stolen or they have some other heart tugging emergency.
• Employment and business opportunity scams – scammers offer work at home opportunities, such as mystery shoppers, but require that the consumer first wire money to them.