NEW YORK: Western Union has agreed to pay $586 million to the US government to pay back victims of fraud that the money transfer company failed to protect.
The government said Thursday that Western Union did not have a strong enough anti-fraud program, allowing scammers to use its money-transfer services to rip off customers.
In one such scam, fraudsters would contact people to trick them into thinking they won a foreign lottery and asked them to send money through Western Union to retrieve their prize.
The Federal Trade Commission (FTC) said in a complaint that Western Union received more than 550,000 complaints between 2004 and 2015 about scam-related money transfers that totaled more than $630 million. The FTC said it believes even more people were victimized, since many may not complain directly to Western Union.
As part of the agreement reached with the FTC and the Department of Justice, Western Union also agreed to put in place and maintain an anti-fraud program and properly train its staff to identify potential fraud.
Western Union said in a statement that much of the activity in the government’s complaint occurred between 2004 and 2012, and that it has increased spending on anti-fraud measures in the past five years.
“We are committed to enhancing our compliance programs to prevent illicit activity on our network and protect customers who transfer money,” Western Union said in a statement.
Shares of Englewood, Colorado-based Western Union Co. fell 72 cents, or 3.3 percent, to close at $21.13 Thursday.
Western Union agrees to pay $586m for fraud victims
Western Union agrees to pay $586m for fraud victims
Saudi POS spending jumps 28% in final week of Jan: SAMA
RIYADH: Saudi Arabia’s point-of-sale spending climbed sharply in the final week of January, rising nearly 28 percent from the previous week as consumer outlays increased across almost all sectors.
POS transactions reached SR16 billion ($4.27 billion) in the week ending Jan. 31, up 27.8 percent week on week, according to the Saudi Central Bank. Transaction volumes rose 16.5 percent to 248.8 million, reflecting stronger retail and service activity.
Spending on jewelry saw the biggest uptick at 55.5 percent to SR613.69 million, followed by laundry services which saw a 44.4 percent increase to SR62.83 million.
Expenditure on personal care rose 29.1 percent, while outlays on books and stationery increased 5.1 percent. Hotel spending climbed 7.4 percent to SR377.1 million.
Further gains were recorded across other categories. Spending in pharmacies and medical supplies rose 33.4 percent to SR259.19 million, while medical services increased 13.7 percent to SR515.44 million.
Food and beverage spending surged 38.6 percent to SR2.6 billion, accounting for the largest share of total POS value. Restaurants and cafes followed with a 20.4 percent increase to SR1.81 billion. Apparel and clothing spending rose 35.4 percent to SR1.33 billion, representing the third-largest share during the week.
The Kingdom’s key urban centers mirrored the national surge. Riyadh, which accounted for the largest share of total POS spending, saw a 22 percent rise to SR5.44 billion from SR4.46 billion the previous week. The number of transactions in the capital reached 78.6 million, up 13.8 percent week on week.
In Jeddah, transaction values increased 23.7 percent to SR2.16 billion, while Dammam reported a 22.2 percent rise to SR783.06 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
