Western Union has made $586 million available in the third phase of remission payments stemming from a 2017 deferred prosecution agreement with federal authorities. The settlement addresses allegations that the company knowingly allowed fraudsters to exploit its money transfer services to conduct scams, including grandparent schemes and lottery fraud, between January 1, 2004, and March 9, 2020. The company did not admit wrongdoing but agreed to the forfeiture as part of simultaneous resolutions with the U.S. Postal Inspection Service and the Federal Trade Commission.
Investigations by federal authorities determined that Western Union was aware fraudsters were using its platform to scam consumers but allegedly failed to implement reasonable protective measures. The schemes typically involved tricking victims into wiring money to criminals through Western Union's global money transfer network. The company's settlement resolved both criminal and civil investigations into these practices.
Eligible claimants must have sent money through Western Union during the specified timeframe and lost funds to fraud. To file a claim, victims need to provide 10-digit Money Transfer Control Numbers from their fraudulent transactions as proof of loss. The claims process requires submission under penalty of perjury, and fraudulent claims may harm legitimate victims by reducing available funds.
Payment amounts will vary depending on the total number of eligible claimants and the individual amounts lost to fraud. There is no fixed payment structure, and the distribution will be calculated after all valid claims are processed. The settlement administrator will evaluate each claim based on the documentation provided and the overall pool of eligible participants.
Consumers who believe they qualify for remission payments must submit valid claim forms by August 19, 2026. The claims administrator can be reached at 833-419-4677 or through the settlement website. Potential claimants should review eligibility requirements carefully before filing to ensure they meet all criteria for participation in this phase of the remission program.
Source: https://topclassactions.com/lawsuit-settlements/open-lawsuit-settlements/586m-ftc-western-union-international-fraud-scam-remission-phase-3/