Walmart will pay $10 million to settle Federal Trade Commission charges that it failed to prevent scammers from using its in-store money transfer services to defraud U.S. consumers of hundreds of millions of dollars. The settlement, announced on June 30, 2025, includes a court order requiring Walmart to implement measures to detect and prevent wire transfer fraud.
The FTC’s June 2022 complaint alleged that between 2013 and 2018, Walmart, acting as an agent for MoneyGram, Western Union, and Ria, allowed its money transfer services to be exploited by scammers. According to the complaint, the company did not establish effective anti-fraud policies, failed to train employees adequately, and neglected to warn customers about potential fraud risks associated with money transfers. The FTC estimated that these lapses enabled scammers to extract significant sums from consumers.
“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. “Companies that provide these services must train their employees to comply with the law and work to protect consumers.”
The legal proceedings followed a complex timeline. In June 2023, the FTC filed an amended complaint, adding details about Walmart’s alleged violations of telemarketing regulations. However, in July 2024, the U.S. District Court for the Northern District of Illinois dismissed the FTC’s Telemarketing Sales Rule claim for the second time, limiting the agency’s ability to secure monetary relief for affected consumers. In November 2024, the Seventh Circuit Court of Appeals permitted Walmart to appeal specific district court rulings, further prolonging the case.
The stipulated final order, approved by a 3-0 Commission vote, resolves the FTC’s case against Walmart. Filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, the order imposes a $10 million judgment and outlines specific prohibitions to prevent future misconduct. Walmart is barred from providing money transfer services without timely and effective fraud detection measures. The company is also prohibited from processing any money transfer it knows, or consciously avoids knowing, is fraud-induced. Additionally, the order restricts Walmart from assisting telemarketers or sellers who use cash-to-cash money transfers for goods, services, or charitable contributions solicited through telemarketing, or who request advance payments for loans or credit extensions, if the company is aware of their fraudulent activities.
The settlement addresses procedural shortcomings identified in the FTC’s investigation. Between 2013 and 2018, Walmart’s money transfer services operated without robust systems to identify suspicious transactions. Employees lacked training to recognize red flags, such as repeated transfers to high-risk destinations or requests for large sums under urgent pretexts. The absence of customer warnings further compounded the issue, leaving consumers vulnerable to scams that often involved impersonation of legitimate entities or promises of fictitious rewards.
The court order mandates Walmart to overhaul its money transfer operations. The company must implement monitoring systems to flag potentially fraudulent transactions and ensure employees are trained to act on such alerts. These measures align with broader industry standards for financial service providers, which require proactive steps to mitigate fraud risks. The $10 million penalty reflects the scale of the alleged consumer harm, though the FTC noted that dismissing the telemarketing claim limited its ability to pursue additional restitution.
The background of the case reveals the challenges of regulating money transfer services. Scammers often exploit these systems due to their speed and irrevocability, making prevention critical. The FTC’s action against Walmart underscores the agency’s focus on holding companies accountable for enabling fraudulent activities, even unintentionally. The case also highlights the complexities of telemarketing regulations, as evidenced by the district court’s repeated dismissal of related claims.
Walmart’s role as a major retailer with extensive money transfer operations made it a significant target for scammers. The company’s partnerships with MoneyGram, Western Union, and Ria facilitated millions of transactions annually, amplifying the impact of its inadequate fraud prevention measures. The settlement marks a step toward stronger consumer protections in the retail money transfer sector, with implications for other companies offering similar services.
The FTC’s Bureau of Consumer Protection prioritizes fraud prevention, urging businesses to adopt rigorous compliance programs. The Walmart settlement serves as a precedent for enforcing accountability in the financial services industry, particularly for retailers that act as intermediaries for money transfer providers.