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US wire fraud scammers may reimburse Aussie victims

24 January 2018 5:40PM
The ACCC is urging all Australians who lost money to a scammer through Western Union from 2004 to 2017 to take action by 12 February to try to get it back. The ACCC has cautioned, though, that as this is a US-based action, it is unable to make claims on behalf of Australian victims or assist with claims. The call to action comes in the wake of an agreement by Western Union to pay a penalty of US$586 million to the United States Department of Justice after admitting to aiding and abetting wire fraud. The DOJ is using this penalty to provide refunds to eligible people worldwide who were tricked into paying scammers via Western Union. All wire transfers made through Western Union within and outside of the United States between 1 January 2004 and 19 January 2017 may be eligible for remission. Australian consumers can submit a claim to the US DOJ either online or by post until 12 February 2018. The ACCC's Scamwatch website said these types of scams often involve the promise of prizes, loans, jobs, discounted products or other financial rewards in exchange for sending money upfront through untraceable wire transfers. "Over $5 million is reported lost each year to these scams [based on wiring funds through Western Union] but this is just the tip of the iceberg as many victims don't contact us," ACCC acting chair Michael Schaper said.The United States v Western Union remission website is the starting point for claims.

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