Walmart Agrees to $10M Settlement in In-Store Money Transfer Scam Case
June 21, 2025 – Washington, D.C. — Retail giant Walmart has agreed to pay $10 million to settle a lawsuit brought by the U.S. Federal Trade Commission (FTC), which accused the company of enabling fraudsters to exploit its in-store money transfer services and defraud consumers out of hundreds of millions of dollars.
The settlement, filed in a Chicago federal court, stems from a 2022 FTC complaint alleging that Walmart ignored red flags and failed to implement adequate safeguards while acting as an agent for money transfer providers like MoneyGram, Ria, and Western Union.
A Pattern of Abuse
According to the FTC, scammers used Walmart’s services to carry out a range of deceptive schemes, including impersonating IRS agents, posing as relatives in distress, and promising fake lottery winnings that required upfront fees. Once the money was sent, it was often untraceable and unrecoverable, leaving victims with little recourse.
“Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once it’s sent, it’s gone for good,” said Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection.
Terms of the Settlement
While Walmart did not admit wrongdoing, the company agreed to enhance its fraud prevention protocols, including:
- Blocking suspicious transactions
- Training employees to detect fraud
- Avoiding assistance to telemarketers or sellers suspected of fraudulent activity
The settlement also ends Walmart’s appeal of a prior court ruling that allowed the FTC to proceed with key claims in the case.
Industry-Wide Scrutiny
This case follows similar enforcement actions against other money transfer services, including Western Union and MoneyGram, which paid $586 million and $125 million respectively in earlier settlements over related allegations.
The FTC emphasized that businesses facilitating money transfers must take proactive steps to protect consumers, especially as scams become more sophisticated and widespread.
