The Federal Trade Commission (FTC) announced Tuesday that it has sued Walmart for allegedly allowing its money transfer services to be used for fraud, enabling scammers to con people out of hundreds of millions of dollars.
In the lawsuit (pdf), the retail giant is accused of turning a blind eye through failure to properly secure the transfer procedures offered at Walmart stores. The alleged lapse allowed scammers to take advantage of the situation and “cash out” at the stores. The FTC also claimed that Walmart did not train its staff or warn customers.
