From Legal News Line:

A troubled wire transfer company settled with 45 state attorneys general Wednesday, agreeing to provide fraud prevention education services.

MoneyGram Payment Systems, Inc., will fund a national consumer awareness program with $1.1 million. The program will provide a national peer-counseling program and put consumer warnings on the forms used to wire money.

According to the attorneys general, con artists prompted the settlement, which can be viewed here.

“Wire transfer scams are one of the fastest-growing forms of fraud throughout the country,” Washington Attorney General Rob McKenna said. “The initial pitch can take many forms but they all end with the con disappearing with the victim’s money.”

“We need to make it tougher for scammers to use traditional methods of transferring money to rip off consumers. Agreements like those the attorneys general have reached with Western Union and now MoneyGram help reduce fraud-induced wire transfers by teaching consumers and money transfer agents how to recognize these schemes.”

Moneygram has more than 25,000 locations in the United States and more than 100,000 around the world.

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