Western Union Plans Sweeping Changes To Protect Against Fraud

AUSTIN, November 14, 2005 - Texas Attorney General Greg Abbott today hailed Western Union’s decision to institute several sweeping changes to its business practices to help prevent telemarketing scams against consumers on a broad scale.

“For too long I have heard story after story of senior citizens and people from every walk of life getting scammed out of thousands of dollars by telemarketing crooks requiring wire transfers of cash,” said Attorney General Abbott. “The measures Western Union has agreed to implement will give consumers a great deal of information about prevention and the risks of sending cash via wire transfer when the work of fraud artists is strongly suspected.

Western Union and all states have joined forces to reduce the frequency of fraud-induced money transfers that are encouraged by scam operators. Western Union operates 40,000 wire transfer points in the U.S. and more than 195,000 around the world which, up to now, have been fertile ground for fraud artists to perpetrate crime against innocent consumers.

The company will now post conspicuous warnings on its forms for sending money, on its Web site and within its toll-free telephone messages. If fraud appears likely during a transaction, the company will reimburse the principal amounts of money transfers if consumers request that Western Union reverse the transfer before the money has been picked up at its destination point. In addition, the company will establish a system to interrupt and hold transfers suspected of being fraud-induced, then notify the consumer about the risks of completing the transfer.

Western Union has also agreed to spend more than $8 million on an education program giving consumers valuable information about avoiding wire transfers of cash that may involve fraud. The company’s agents will receive intensive anti-fraud training. Offices and agents found to be conspiring in fraudulent transfers will be terminated and reported to law enforcement agencies, according to the agreement.

Give us your Feedback about this story!