Below is an article from six months ago. I've visited the site and some of the local stores here where Western Union does transfers and I didn't see "one" conspicous" warning anywhere at any of the locations I went to. The site has a "link" that doesn't stand out very well at all and can be easily overlooked. And has anyone seen this so-called $8 million dollar education program of theirs??? And "if" the agents are getting all this "intensive anti-fraud training" why are so many ignorant to these scams??? Almost all scams are done thru Western Union transfers so why do they continue to let it happen??? Seems to me that Western Union could do a much better job of warning consumers but it seems they are more interested in collecting the large fees that are associated with these transfers than they are in protecting the victims! Maybe a boycott of some sort would do a much better job of shaking them up!
Western Union pays for wire transfer scams
By Beth Harris [January 4th, 2006]
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Forced by several state attorneys general, Western Union has finally agreed sweeping changes to its business practices to help prevent telemarketing scams against consumers on a broad scale.
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The problem of fraud-induced transfers was documented by a survey of 2002 transactions conducted in 2003 by seven states. According to the survey, more than 29 percent of Western Union transfers in excess of $300 from the U.S. to Canada were fraud-induced, representing 58 percent of the total dollars transferred and an average of over $1500 per transfer. Total American consumer losses to Canada alone in 2002 were estimated at $113 million.
In response to these findings, a group of state Attorneys General began negotiating with Western Union. The negotiations have produced an agreement, which will provide adequate warnings to consumers who transfer money by wire, educate high-risk consumers, and change company practices.
Western Union is acting to reduce the frequency of fraud-induced money transfers that are encouraged by scam operators. Western Union operates 40,000 wire transfer points in the U.S. and more than 195,000 around the world which, up to now, have been fertile ground for fraud artists to perpetrate crime against innocent consumers.
The company will now post conspicuous warnings on its forms for sending money, on its Web site and within its toll-free telephone messages. If fraud appears likely during a transaction, the company will reimburse the principal amounts of money transfers if consumers request that Western Union reverse the transfer before the money has been picked up at its destination point. In addition, the company will establish a system to interrupt and hold transfers suspected of being fraud-induced, then notify the consumer about the risks of completing the transfer.
Western Union has also agreed to spend more than $8 million on an education program giving consumers valuable information about avoiding wire transfers of cash that may involve fraud. The company’s agents will receive intensive anti-fraud training. Offices and agents found to be conspiring in fraudulent transfers will be terminated and reported to law enforcement agencies, according to the agreement.
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