- The Federal Trade Commission has sued Walmart Inc (NYSE:WMT), alleging that the retail giant allowed its money-transfer services to facilitate fraud.
- According to the complaint, the company did not properly train its employees, failed to warn customers, and used procedures that allowed fraudsters to cash out at its stores.
- The financial services offered by Walmart include money transfers, credit cards, reloadable debit cards, check cashing, and bill payments.
- "Consumers have lost hundreds of millions, and the Commission is holding Walmart accountable for letting fraudsters fleece its customers," said FTC.
- In response to the lawsuit, Walmart called the suit "factually misguided and legally flawed."
- Money transfers are used by fraudsters as they are nearly impossible to retrieve after the money has been picked up.
- Price Action: WMT shares are trading higher by 0.26% at $122.69 in premarket on the last check Wednesday.
- Photo Via Company
