Western Union will need to payback the victims who lost money to scammers through its money transfer service.
On January 19, 2017, the company paid US$586 million to settle charges brought by the US Federal Trade Commission (or FTC) and the Department of Justice (or DOJ).
The company admitted to criminally aiding and abetting wire fraud through various schemes.
DOJ found that fraudsters directed the victims to send money through Western Union to help relatives, avoid imprisonment or arrest, or to claim prizes, receive loans, employment, products or some other financial award.
Navjot Singh Pannu who is a Sydney-based lawyer is helping some of the victims to recoup their money.
Mr Singh told SBS Punjabi the settlement is one of the largest financial forfeiture by a money service business.
“Western Union had a duty to protect people, but they failed to do so,” said Mr Singh.
“People who lost money using Western Union services between 2004 to 2017 are eligible to apply for a refund before 12 February.
Singh says this settlement came about after Western Union was accused of ignoring many reports and evidence that supported the fact that company didn’t apply any checks to prevent the frauds.
“The case was initiated by DOJ after Western Union admitted that they didn’t do enough to prevent these frauds, he says.
“DOJ will be using a penalty of US$586 million to provide relief to eligible people worldwide who were tricked into paying scammers via Western Union.
Australian Competition and Consumer Commission (ACCC) has urged all eligible Australians to apply for a refund.
“Scamwatch hears heartbreaking stories on a daily basis from Australians who have lost money to scammers by wiring funds through Western Union,” ACCC Acting Chair Dr Michael Schaper said.
“Over $5 million is reported lost each year to these scams but this is just the tip of the iceberg as many victims don’t contact us.
“The sad reality is that in most cases, once you have fallen victim to a scammer, the money is gone – and there’s nothing you can do to get it back.
“For people who have wired money via Western Union from 2004 until 2017, this may be your chance to recover some of it. There are no guarantees but we strongly encourage you to try by 12 February, says ACCC.
Australian consumers can submit a claim to the US DOJ either online or by post until 12 February 2018.
