Walmart (WMT) Pays $10 Million Fine to Settle Lawsuit over Money Transfer Fraud

Business Insider

21-06-2025

Walmart (WMT) has agreed to pay a $10 million fine to settle a U.S. Federal Trade Commission civil lawsuit accusing the world's largest retailer of ignoring warning signs that scam artists leveraged its money transfer service to bilk consumers out of hundreds of millions of dollars.
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Walmart has also agreed not to process money transfers it suspects are fraudulent, or help sellers and telemarketers it believes are using its services to commit fraud. '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 Consumer Protection Bureau.
Bentonville, Arkansas-based Walmart did not admit or deny wrongdoing in settling the case. In its complaint, the FTC accused Walmart of turning a blind eye to fraudsters who used its money transfer service to target consumers. Walmart acts as an agent for money transfers by companies such as MoneyGram and Western Union (WU).
Tricksters
The FTC said fraudsters used many schemes via Walmart, including impersonating Internal Revenue Service (IRS) agents, impersonating family members, and telling victims they won lotteries or sweepstakes but owed fees to collect their winnings.
The judge dismissed part of the FTC's legal claim last year but let the regulator pursue most of its case. Walmart appealed that decision. The $10 million settlement effectively ends Walmart's appeal. WMT stock is up 6% this year.
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