Western Union to pay restitution to scam victims

Hawaii residents scammed out of money they transferred via Western Union have an opportunity to be paid back.

The state Office of Consumer Protection is urging local victims of scams that used Western Union wire transfer services to file claims by a Feb. 12 deadline.

Western Union agreed in January to pay $586 million to victims nationally to settle charges brought by the Federal Trade Commission and U. S. Department of Justice that claimed the company was aware of the problem, lacked effective anti-fraud policies and failed to promptly discipline problem agents. Essentially, Western Union aided and abetted wire fraud, the FTC said.

The FTC said scammers pretended to be family members in need of cash, impersonated law enforcement personnel demanding payments and lied about awarding prizes, loans, jobs, discounted products and other things in exchange for upfront payments sent via Western Union.

Anyone who fell victim to such scams by sending money through Western Union between Jan. 1, 2004, and Jan. 19, 2017, is eligible for restitution.

Hawaii’s consumer protection office could not immediately say Monday how many local residents might be affected or have reported to state regulators that they were scammed through Western Union.

Victims who previously reported their losses to Western Union, the FTC or Hawaii’s Department of Commerce and Consumer Affairs will receive a form in the mail from claims administrator Gilardi & Co. hired by the Justice Department. Victims who have not reported their loss or do not receive a claim form can go to FTC.gov/WU for instructions on filing claims. More information on the settlement is also available on the site.

Hawaii consumer protection officials also warned claimants to be aware of potential scams regarding Western Union restitution.

“Filing a claim is free,” the agency said, “so consumers should not pay anyone to file a claim on their behalf.”

The agency added that claim forms will have ID and PIN numbers, and that no one associated with the claims process will ask for bank or credit card numbers. The FTC said it does need Social Security numbers for claimants to verify that they don’t owe money to the federal government. Victims who owe the government money could have their payments reduced by the amount they owe.

The total amount of money repaid to victims will depend on how much an individual lost and how many people submit valid claims. Repayments could take up to a year to validate and send out, the FTC said.