FTC mails $9.8 million to 65,000 people after accusing Walmart of failing to stop scammers from using its money transfers

According to the FTC’s claims, Walmart knew scammers were using its stores to collect money from victims of fraud schemes, but it didn’t take enough action to warn customers and spot red flags. Allegedly, Walmart stores didn’t put enough warning labels on forms, and employees weren’t well-trained in proper fraud prevention.

In an October press release, the FTC said it just sent $9.8 million in 65,022 refund checks to Walmart customers who used eligible money transfer services between January 2015 and December 2024. Anyone who gets one of these checks should cash it within 90 days.

Regarding the 2025 settlement, a Walmart spokesperson told Moneywise, “We’re pleased to have this matter behind us. While it is clear in the agreement that we do not admit fault, we share in the FTC’s goal to protect consumers from fraudsters and continue to be dedicated to safeguarding consumers from fraud-induced money transfers.”

Wire wiser: How to outsmart scammers

​The appeal of wire transfers is obvious. Since they send money directly between individuals or bank accounts, they’re a very fast transfer method. Unfortunately, the FTC notes that this convenience comes with a safety trade-off that scammers love.

​The FTC’s Director for the Bureau of Consumer Protection, Christopher Mufarrige, pointed out this vulnerability when talking about the $10-million Walmart settlement, saying, “Electronic money transfers are one of the most common ways that scammers tell consumers to send them money, because once it’s sent, it’s gone for good.”​

Unlike other payment methods like credit cards, a wire transfer can make cash available immediately without a dispute period. By the time victims realize they’ve been duped, fraudsters have likely already withdrawn the funds and moved them to other accounts, making them harder to trace and recover.

For this reason, agencies like the FTC list wire transfers as a preferred payment method for fraud schemes, alongside cryptocurrencies, gift cards, and bank transfers.

Generally, the harder it is to claim a refund for a payment method, the more cautious customers should be.

The FTC’s top safety tip for wiring funds is simple but effective: Only send money to recipients you’ve met in person.

If you ever feel pressured to wire funds ASAP, or if you’re receiving messages that appear to be from government agencies or companies, stop. In many cases, you’re probably dealing with a scam.

The FTC warns of several scam tactics, but common warning signs include building trust or demanding a time-sensitive payment. For instance, “family emergency” scams make you believe — often using voice-mimicking AI technology — that someone close to you is in danger and needs fast cash. Another example is “sweepstakes scams,” which make you think you’ve won a prize, then ask for a wire fee to cover something like taxes or shipping costs.

Whenever a wire transfer is involved, don’t believe claims at face value. If you think you’re a target of one of these scams, the FTC urges you to report it on their official online portal.

Wait, how can I trust this check from the FTC is legit?

With so many stories of scams nowadays, it makes sense to be extra skeptical when you see what seems like “free money” in the mail.