MoneyGram International has agreed to make extra efforts to protect consumers from fraud-induced money transfers in response to concerns from state Attorneys General.
Through an agreement of voluntary compliance, MoneyGram is taking steps to enhance consumer protections and further address the problem of wire transfer fraud. The company and 44 states plus the District of Columbia are cooperating on a five-year plan to raise public awareness of the dangers of fraud through a variety of tactics including enhanced consumer education, more prominent fraud warnings for money transfer customers and enhanced training for agents.
Besides enhancing its own education efforts, MoneyGram will contribute $1.1 million to the AARP Foundation for Consumer Education to fund a fraud awareness program aimed at the elderly, who are often targets for fraud. This program is expected to get underway in the next three to six months.
"We are very pleased to help launch this program," said Tony Ryan, Executive Vice President and Chief Operating Officer of MoneyGram International. "We are committed to helping to stop fraud and protect consumers, and we know that this is an issue that none of us can tackle alone."
"AARP Foundation's fight against consumer fraud advances AARP's goal of ensuring the economic security of people 50 and over," said AARP Foundation President Robin Talbert. "Preventing consumer fraud and abuse are critical components of financial security. AARP, the AARP Foundation and hundreds of community volunteers have been fighting fraud directed at older consumers for more than 10 years. We are very proud of our outreach and education."
MoneyGram will also pay $150,000 to the Attorneys General Executive Committee to cover costs.