DOJ Opens Third Phase of Compensation for Western Union Fraud Victims

The U.S. Department of Justice began a third phase of compensation for victims of Western Union fraud.

An additional $3.4 million is being distributed to 1,294 victims, and the department has reopened the petition process for victims who did not previously file claims. The department previously distributed more than $436.9 million to 180,000-plus victims. Western Union entered into a deferred prosecution agreement with the DOJ in 2017 and agreed to forfeit $586 million. The company acknowledged responsibility for violations of the Bank Secrecy Act and aiding and abetting wire fraud.

According to court documents, fraudsters targeted consumers through schemes involving fake lottery winnings, romance scams and fraudsters posing as relatives needing emergency funds.

Certain owners, operators and employees of Western Union locations were found to be complicit in the schemes. Western Union aided and abetted the fraud by failing to suspend or terminate complicit agents, allowing them to continue processing fraudulent transactions, according to the DOJ.

Western Union also resolved a parallel civil investigation with the Federal Trade Commission. The company fulfilled its obligations under the deferred prosecution agreement, and a court dismissed the criminal charges in 2020.

Victims who sent money through Western Union between Jan. 1, 2004, and March 9, 2020, because of fraud may be eligible for compensation. The deadline to file a petition is Dec. 31. Petitions can be submitted through a website, and information about eligibility and the compensation process is also available by calling (833) 419-4677.