Walmart to pay US$10 million to settle US FTC lawsuit over money transfer fraud
The settlement was filed on Friday (Jun 20) in Chicago federal court, and requires approval by US District judge Manish Shah.
Walmart 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's consumer protection bureau. 'Companies that provide these services must train their employees to comply with the law and work to protect consumers.'
The Bentonville, Arkansas-based retailer did not admit or deny wrongdoing in agreeing to settle.
Walmart said that it was pleased to settle and shared the FTC's goal of protecting consumers from fraudsters, including from fraud-induced money transfers.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
In its June 2022 complaint, the FTC accused Walmart of turning a blind eye to fraudsters who used its money transfer services to cash out at its stores.
Walmart acts as an agent for money transfers by companies such as MoneyGram, Ria and Western Union. Money can be hard to trace once delivered.
The FTC said fraudsters used many schemes that included impersonating Internal Revenue Service agents, impersonating family members who needed money from grandparents to avoid jail, and telling victims they won lotteries or sweepstakes but owed fees to collect their winnings.
Shah dismissed part of the FTC case last July but let the regulator pursue the remainder. Walmart appealed from that decision. Friday's settlement would end the appeal. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
28 minutes ago
- Business Times
Kraft Heinz explores grocery business spinoff worth up to US$20 billion: source
[Bengaluru] Kraft Heinz is studying a potential spinoff of a large chunk of its grocery business, including many Kraft products, into a new entity that could be valued at as much as US$20 billion on its own, a source familiar with the matter said on Friday (Jul 11). However, the structure of the deal could change and there is no guarantee Kraft Heinz would move forward with any such deal, the source said. News of the potential move is the second effort this week by a storied US company looking to shore up shareholder value as shoppers ditch their pricey products in an uncertain economy. Earlier this week, cereal maker WK Kellogg agreed to a US$3.1 billion buyout deal from Italy's Ferrero. The Wall Street Journal first reported the development earlier in the day. According to the report, a split, which would leave the company with products such as its namesake Heinz ketchup and Dijon mustard brand Grey Poupon, could be finalised in the coming weeks. 'As announced in May, Kraft Heinz has been evaluating potential strategic transactions to unlock shareholder value,' a company spokesperson said. Its shares closed up 2.5 per cent. The company currently has a market value of US$31.3 billion. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Kraft Heinz was formed in 2015 after Warren Buffett's Berkshire Hathaway and Brazilian private equity firm 3G Capital combined the former Kraft Foods with HJ Heinz, which they bought in 2013. But it has been a challenging investment for Berkshire. Inflationary pressures and a shift in focus towards fresher, less processed food have hurt demand for Kraft Heinz's lunch combos and other products. It lowered annual forecasts and reported a dour quarter in April, hurt by muted consumer spending. Kraft Heinz also said last month it would stop the launch of new products with artificial colours in the US after Health Secretary Robert Kennedy Jr outlined plans to remove synthetic food dyes from the US food supply to address chronic diseases and conditions. '(Kraft Heinz) spinning off its grocery business echoes the 2023 Kellogg spinoff in which the company spun off its cereal business, which had been in volumetric decline for some time,' said Connor Rattigan, analyst at Consumer Edge. 'As CPGs (consumer packaged goods makers) contend with both changing consumer preferences and a challenging consumer environment, other CPGs may look to mergers and acquisitions or similar corporate actions to improve their category exposures and improve their top-line trajectory,' Rattigan said. REUTERS
Straits Times
an hour ago
- Straits Times
Man had 14 toucans stashed in his Volkswagen dashboard, US Says
Sign up now: Get ST's newsletters delivered to your inbox Carlos Abundez is charged with smuggling 14 live, bound Keel-billed toucans that the authorities said were hidden inside the dashboard of his Volkswagen Passat. WASHINGTON - The driver of the Volkswagen Passat said he had nothing declare, according to US Customs and Border Protection officers. But when a narcotics and human detection dog got a whiff under the steering wheel, which authorities said had been covered with duct tape and cloth, it noticed something was amiss. So did the officer handling the dog, who made a startling find while reaching for something that was hidden behind the cloth. Stashed inside the vehicle's dashboard were 14 live Keel-billed toucans, a threatened species of bird that is illegal to bring into the United States and can each sell for up to US$5,000 (S$6,400), authorities said. Native to southern Mexico down through Ecuador, including Venezuela, Colombia and Nicaragua, the birds appeared to have been sedated when they were discovered during an early morning inspection June 25 at the Otay Mesa US-Mexico border crossing in San Diego. One of the birds 'began to move rapidly in a flutterlike fashion', investigators said in a federal criminal complaint. The driver, Carlos Abundez, 35, of San Ysidro, California, told a US Fish and Wildlife Service agent that he was not aware how the toucans got into his car and that he had no connection to any bird trade activity, according to a criminal complaint. Top stories Swipe. Select. Stay informed. Asia Air India crash report shows pilot confusion over engine switch movement Business F&B operators face tougher business landscape amid rising costs and stiff competition Business What's in store for policyholders after GE removes pre-authorisation letters for two private hospitals Multimedia Which floor is this? Chongqing's maze-like environment powers its rise as a megacity Life The rise of Tupai King, the rage of weather: How durian season is changing Asia 'Woven air': Ancient fabric spun across history makes comeback amid lies and climate change Life At 79, she can do 100 pull-ups: Why more seniors are hitting the gym World US man who decapitated father and displayed head on YouTube gets life in prison Abundez said that he had left his part-time residence in Tijuana, Mexico, late on the night of June 24 to cross the border into the United States to get McDonald's when he saw two unfamiliar vehicles. He said that his car had been parked in the driveway and was locked. He was charged July 7 with smuggling and illegal importation, both of which carry a maximum penalty of 20 years in prison and a US$250,000 fine. After making his initial court appearance Wednesday in U.S. District Court in San Diego, Abundez was released on US$10,000 bond. He will be allowed to travel to his home in Mexico, and his arraignment is scheduled for Aug 7. The birds, which were identified as juveniles, had injuries that included broken tails and a broken leg, according to customs officers. After receiving veterinary care at the border, the toucans were transferred to a US Department of Agriculture Animal Import Center for quarantine. Authorities said they were in stable condition. 'Smuggling endangered birds by sedating them, binding their beaks and hiding them in car compartments is not just cruel – it's criminal,' Mr Adam Gordon, the US attorney for the Southern District of California, said in a statement. Mr Gordon said that the trafficking of exotic wildlife through border crossings in Southern California poses a serious threat to public health and agriculture. 'These birds bypass mandatory quarantine and screening, potentially carrying devastating diseases like avian influenza,' he said. Mr Paul Blake Jr, a lawyer for Abundez, declined to comment. NYTIMES
AsiaOne
2 hours ago
- AsiaOne
Rubio says no 'drama or division' in US relations with Japan, World News
US Secretary of State Marco Rubio on Friday (July 11) played down concerns about relations with key US ally Japan, saying there is no "drama or division," despite the Japanese prime minister speaking of the need for Tokyo to wean itself off US dependence. In remarks to reporters, Rubio also disputed reports of US pressure on Japan to significantly increase its defence spending, saying that while Washington was "encouraging" Tokyo to invest in certain capabilities, this did not amount to a "demand." "It's less to do with the amount of money and more to do about certain things they can do," he said after attending a regional meeting in Malaysia. Japanese media reported last month that the Trump administration was demanding that Japan and other Asian allies boost defence spending to 5 per cent of GDP in line with demands on Nato members. A Financial Times report last month said Japan cancelled an annual defence and foreign ministers meeting with the US after it called on Tokyo to boost defence spending beyond what it requested earlier. President Donald Trump further upset Japan this week by announcing a 25 per cent tariff on Japanese imports starting Aug 1 as part of his global tariff strategy. On Thursday, Japanese Prime Minister Shigeru Ishiba said Japan needed to wean itself from US dependence in security, food, and energy. Asked about Ishiba's remarks, Rubio said the United States has "a very strong and very good relationship with Japan, and that's not going to change." "Anyone who's looking for, like, drama or division there ... shouldn't be doing it because the truth of the matter is our relationship with Japan is very solid." He said Ishiba's comment should not be viewed negatively. [[nid:720006]] "The idea that Japan's military would become more capable is not something we would be offended by; it's something we would actually be encouraged by," he said. Christopher Johnstone, a former Biden White House official now with the Asia Group consultancy, said trade frictions, pressure on defence spending, and uncertainty about US defence commitments meant US-Japan tensions were probably at their worst in a generation, but reducing Tokyo's reliance on the US was easier said than done. "If the two countries reach a trade agreement by Aug 1, it could fade," he said. "But Ishiba's comments reflect sentiment that is real and widespread."
