'You Might Have Won Some Money:' Really

PROVIDENCE, RI — Everyone by now has probably heard about the grandchildren in danger scam and similar frauds.

According to state Atty. Gen. Peter Kilmartin, these "schemes include 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, grandparent scams in which a consumer believes his or her loved one is in immediate danger and needs money right away, and romance scams in which someone poses as a love interest and then soon begins asking consumers to send money for various reasons.”

It's hard to prosecute the fraudsters given the fact many are working overseas.

But several states opted to sue Western Union for the company's failure to implement an anti-fraud program.

“While it is important for consumers to be mindful of the many scams and schemes that are out there, it is incumbent on companies to not allow their products and services to be used by these criminals and have the proper controls in place to identify and stop the scams,” added Kilmartin.

Western Union has agreed to pay a total of $5 million to the states for the states’ costs and fees. Rhode Island will receive approximately $44,000. The company will also beef up its anti-fraud measures.

What about the customers?

In addition to this settlement with the states, Western Union also settled claims related to fraud-induced transfers. The Federal Trade Commission and U.S. Department of Justice announced that deal on Jan. 19. The company has agreed to pay $586 million to a fund that the Department of Justice will administer to provide refunds to victims of fraud induced wire transfers nationwide, including Rhode Island victims.

For information on how to file a claim, please visit the Department of Justice website at https://www.justice.gov/criminal-mlars/remission.