June 23, 2025 – Walmart, the world’s largest retailer, has agreed to pay $10 million to settle a lawsuit filed by the Federal Trade Commission (FTC) alleging that the company failed to prevent scammers from exploiting its in-store money transfer services, resulting in consumer losses of hundreds of millions of dollars.
The settlement, filed on June 20, 2025, in the U.S. District Court for the Northern District of Illinois, also requires Walmart to implement stricter anti-fraud measures to protect consumers.
The FTC’s complaint, initially filed in June 2022 and amended in June 2023, claimed that between 2013 and 2018, Walmart “turned a blind eye” to fraudulent activities facilitated through its money transfer services, which are provided in partnership with companies like MoneyGram, Western Union, and Ria.
According to the FTC, scammers used tactics such as impersonating IRS officials, posing as relatives in distress, or promoting fake lottery winnings to trick consumers into sending money via Walmart’s services.
These transactions, often irreversible once completed, led to significant financial harm for victims across the United States.
“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 FTC alleged that Walmart failed to implement effective anti-fraud policies, neglected to adequately train employees, and did not provide sufficient warnings to customers about potential scams.
The complaint further noted that Walmart processed transactions with suspicious characteristics, such as high-dollar amounts or inconsistent identification data, without proper scrutiny.
In some cases, the FTC claimed, Walmart employees were complicit in scams, accepting tips from fraudsters or failing to follow internal procedures.
As part of the settlement, Walmart neither admitted nor denied the allegations but agreed to pay the $10 million fine, which will be used for consumer redress or other remedies as determined by the court.
Additionally, Walmart committed to enhanced oversight measures, including prohibiting the processing of suspected fraudulent transfers and ceasing partnerships with sellers or telemarketers believed to be engaging in fraud.
The settlement, pending approval by U.S. District Judge Manish Shah, also resolves Walmart’s appeal of a prior court decision that allowed key allegations to proceed.
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Statements From Walmart on Fraud Negligence Charges
Walmart issued a statement expressing satisfaction with the resolution and emphasizing its commitment to consumer protection.
“We are pleased to settle and share the FTC’s goal of protecting consumers from fraudsters, including from fraud-induced money transfers,” the company said.
Walmart also highlighted its existing anti-fraud efforts, noting that it has blocked over $700 million in suspicious transfers and refunded $4 million to victims of gift card fraud.
The case underscores growing regulatory scrutiny of retailers offering financial services.
Similar settlements have been reached with other money transfer providers, including Western Union, which paid $586 million in 2017, and MoneyGram, which paid $125 million in 2021, for failing to address fraud on their platforms.
The FTC’s action against Walmart highlights the importance of robust compliance programs to prevent consumer harm in an era of increasing financial scams.
Consumer advocates have mixed reactions to the settlement.
Samuel Levine, former Director of the FTC’s Bureau of Consumer Protection, criticized the deal’s three-year expiration, arguing that it allows Walmart to “profit off fraud and walk away clean” without permanent safeguards.
Others, however, view the settlement as a step toward greater accountability for retailers handling financial transactions.
The FTC encourages consumers to report fraud and stay informed about common scams, such as those involving money transfers or gift cards.
For more information, visit the FTC’s consumer protection website or Walmart’s fraud alerts page, which provides guidance on recognizing and avoiding scams.
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