Walmart has agreed to pay $10 million to settle a federal lawsuit claiming it allowed scammers to misuse its money transfer services to steal from customers.
The FTC, which filed the lawsuit in 2022, said the company didn't do enough to stop fraud, even when there were clear warning signs.
Scammers reportedly used Walmart's system to trick people with fake stories like lottery wins, emergencies, or posing as government officials—causing victims to lose hundreds of millions of dollars.
"Once it's sent, it's gone for good," said Christopher Mufarrige, director of the FTC's Bureau of Consumer Protection. "That's why companies must train employees and stop fraud before it happens."
According to Reuters, Walmart did not admit any wrongdoing in the settlement. However, the company said it is committed to protecting customers.
"We're pleased to have this matter behind us," Walmart said in a statement. "We share the FTC's goal of protecting consumers from fraud and remain dedicated to preventing scam-related money transfers."
Outrageous collusive settlement between the Trump FTC and Walmart. Hundreds of millions of dollars of harm to consumers and Trump FTC let them pay pocket change of $10 million. Consent orders are usually 20 years—this one is only 3. https://t.co/sk0pY8IUZi
— mad stan, esq. (@_vectorist) June 21, 2025
FTC Pushes Walmart to Act Fast on Fraud Prevention
The settlement, filed in federal court in Chicago, still needs approval from US District Judge Manish Shah. If approved, it will end Walmart's appeal and formally close the case.
According to the FTC, Walmart acted as an agent for other money transfer companies, such as MoneyGram, Western Union, and Ria.
The agency claimed Walmart failed to train staff properly, didn't warn customers, and lacked strong anti-fraud policies from 2013 to 2018, MarketWatch said.
The order now requires Walmart to act quickly if fraud is suspected and bans it from sending or paying out any transfer it knows—or should know—is linked to a scam.
This is part of a larger effort by federal officials to stop criminals who use wire transfers to trick people out of money. Common tactics include pretending to be IRS agents, telling people they've won sweepstakes, or faking family emergencies.
The case is titled "Federal Trade Commission v. Walmart Inc.," and was filed in the Northern District of Illinois.
While Walmart says it is not at fault, the $10 million payment is meant to help ensure better protections for customers going forward.
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