AG: Kentuckians to Receive $6,8M in Western Union Fraud Settlement

FRANKFORT, Ky. (WTVQ) – On Tuesday, Attorney General Andy Beshear announced that Western Union has agreed to pay an initial estimate of $6.8 million to Kentuckians who have been victims of fraud induced wire transfers involving the company.

Beshear said much of the money will go to repay senior citizens who are particularly targeted and victimized by many of the scams that utilize Western Union.

The agreement is part of a multistate settlement with Colorado-based The Western Union Company to resolve an investigation on complaints by consumers who transferred money to a fraudulent third party using the company’s services.

Kentucky will receive nearly $60,000 in penalties from the settlement that will go to the state’s General Fund.

The settlement, which includes 48 other states and the District of Columbia, requires Western Union to develop and put into action a comprehensive anti-fraud program designed to help detect and prevent incidents of fraud from scammers.

“Today’s announcement gives a little bit of justice to the thousands of Kentuckians who have been ripped off by scammers,” Beshear said. “Over the last year, my office has seen firsthand the growing number of scams confronting our citizens, especially our seniors, and how these criminal scam artists are adept at creating schemes to convince Kentuckians to wire them money.”

Nationally, more than 3 million consumers were conned out of $765 million in 2015. Seniors lose nearly $37 billion a year to elder financial abuse.