Breaking News Bar
updated: 11/9/2012 7:48 AM

MoneyGram agrees to settle scam charges

Success - Article sent! close
Associated Press

DALLAS -- MoneyGram says it has agreed to set up a $100 million compensation fund as part of a settlement of government accusations of fraud through money-transfer scams from 2003 to 2009.

Under the terms of the deal with the U.S. Attorney's Office for the Middle District of Pennsylvania and the Department of Justice, MoneyGram International Inc. said Friday that it's also taken other steps to prevent more scams. These include adding more investigators and beefing up technology to detect fraud.

The payment services provider says it has terminated relationships with the agents suspected of masterminding the fraud.

It says it has also overhauled its corporate compliance program and began a new training program for agents to better sniff out and report scams.

The company says it has already set aside money to compensate victims.

Share this page
Comments ()
Guidelines: Keep it civil and on topic; no profanity, vulgarity, slurs or personal attacks. People who harass others or joke about tragedies will be blocked. If a comment violates these standards or our terms of service, click the X in the upper right corner of the comment box. To find our more, read our FAQ.