Western Union is an American financial services and communications company, which runs money transfer services in the U.S. and worldwide.
For years, scammers have been using its system to commit significant fraud. But even after the company acknowledged the practice and faced clear evidence, it kept taking people’s money and deliver it to scammers.
In a global settlement with the FTC and the U.S. Department of Justice, Western Union agreed to return $586 million to those that have been affected.
People are eligible to receive compensation if they were a victim of a fraud-induced transfer using Western Union between January 1, 2004 and January 19, 2017. The individual amounts will vary depending on the circumstances of each case.
What's more, Western Union also creates a real and strong anti-fraud program by training and monitoring its agents so that people are protected. The company won’t be allowed to transmit a money transfer that it knows – or should know – is a fraud.
It has to block money transfers to anyone who has a fraud report, make it easier for people to report fraud, provide clear warnings to people who are sending money, and refund a fraud-related money transfer if the company didn’t comply with its own anti-fraud procedures.
According to the FTC, from January 2004 to August 2015, the company received more than 550,000 complaints about money transfers made for fraudulent lottery and prizes, family emergency calls, advance-fee loans, online dating and more.
While there are internal reports which flagged frauds by some of its agents, and there were warnings from the U.S. and international law enforcement about the fraud, Western Union kept sending the money to scammers.
People that were affected, need go to FTC's website, and provide any necessary evidence and information, including paperwork if available. The forms has explanation about how people can file their claim and how to receive compensation.
The Department of Justice, which is handling the claims through their contractor, Gilardi & Co, will use that information to try to validate Western Union money transfer.
The claims period is until May 31st, 2018.
