Moneygram to pay $13M to settle fraud complaints

HARRISBURG, Pa. (WHTM) – MoneyGram Payment Systems will pay $13 million to Pennsylvania and other states to fund a restitution program for people who were defrauded after using company’s wire transfer service.

Moneygram further agreed it would take steps to detect and prevent fraud as part of a settlement announced Thursday by Attorney General Kathleen Kane’s office.

Moneygram’s wire service allows people to transfer money throughout the world. The service is often used by scam artists who promise cash and other prizes, or demand payment for purported medical and legal services provided to a family member overseas.

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