Regulatory filing reveals Western union probe over alleged fraudulent money transfers

A regulatory filing that was made public on Monday revealed that US authorities has been investigating Western Union Co over allegations that money moved through its network have ties to alleged fraud. The largest money-transfer company in the world reportedly received multiple subpoenas as a result of the investigation since November 25, MarketWatch said. The subpoenas were issued by the U.S. attorney's office for the Middle District of Pennsylvania.

The subpoenas are legal demands for the money service provider to turn over documents in relation to customer complaints regarding fraud-induced money transfers against Western Union dating back January 1, 2008, the Englewood, Colorado-based company said in its latest filing. Moreover, the subpoenas are requesting information about several of Western Union's agents in lieu of the investigation.

In its annual report filed with the US Securities and Exchange Commission, Western Union said about the investigation on the company, "The government's investigation is ongoing and the company may receive additional requests for information as part of the investigation. The company is cooperating fully with the government."

MarketWatch said that Western Union its smaller competitor, MoneyGram International Inc, came under fire by state and federal authorities over the inadequacy of controls to prohibit the use of its services against scammers. With their money transfer services available all over the world, it was no question that Western Union is popular among scammers and unscrupulous individuals or entities for their illegal activities.

In a November court filing, it has been known that the US Federal Trade Commission is seeking to detect instances where Western Union's measures could be bypassed by third parties to scam consumers into wiring their money to them. MarketWatch said that the agency had been battling it out with Western Union regarding the former's request to turn over information needed to accelerate the process of its investigation with the global money services provider.

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Western Union fraud complaints, Western Union probe

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