Consumer Fraud Recourse for Western Union Scam

My partner and I are moving to Brighton, UK. Before he left we arranged for him to meet with a landlord to put a deposit down a property. The guy claimed he was from Liverpool and needed proof of funds before he could show the place. I did not think that being too dodgy since every other responder from my Gumtree ad had mentioned this practice. (oh, hindsight...)

Getting on with it, I sent money ($3000) through Western Union in my partner's name, indicating it would be picked up in Brighton, UK. I then forwarded both the request and the receipt over to the landlord, as he had requested. Before doing so, I checked with Western Union over the phone on what I.D. was necessary for a cash pick-up (2 photo ID's) and I read the entire fine print on the form to send money. This transaction was definitely to someone that I trusted.

Within 1.5 hours of our last email exchange where I had sent him the receipts, the "landlord" had intercepted the money in London (not in Brighton as indicated). At the time of pick-up my partner was on an airplane en route to London and could not have possibly picked up the money. I was able to coax a phone number from the "landlord" and actually talked to him on the phone.

My partner opened a case with the Sussex police (UK) and I started contacting Western Union. He was interviewed by the police for an hour and sent them documentation such as passport stamps, airline itinerary, etc. I was able to gather from Western Union the address, date, and time that the money was picked up.

Western Union did a "paid in error" investigation and they did show that the money was paid out properly. This would seem, to me, to indicate that they were able to demonstrate that the agent at the pick-up location met all the requirements regarding ID checks to ensure the money was being delivered correctly. They referred me to an arbitration service where I submitted all of the documents that I have related to air travel, passports, etc.

The final piece that we delivered to the Sussex police was email transcripts with the landlord that provide both the arrangements we agreed to as well as a confession that the landlord had scammed us and he was from a poor country named Benin.

I am highly dissatisfied with the few details provided to me regarding Western Union's investigation. Furthermore, attempts at getting them to talk with the Sussex police have been futile since neither party wants to initiate the conversation despite each of them having unique evidence to the case.

I do understand there are 2 components here: (1) Western Union negligence (2) Criminal fraud matter involving the landlord.

I was hoping for some advice on whether we are basically out of luck or whether there are any legal rights or recourse for us, especially from Western Union. I am very angry and will not hesitate to apply it (appropriately) to the correct agency/channel if I have some semblance of a case.

If you have read this far I both applaud and thank you! dave.

Hi there Dave. I am writing to you with a heavy heart since I have discovered this scam just last week.

A friend of mine wants to move and was searching for apartments on the very well known "Craigs List" online listing web site at craigslist.com - and he found an apartment that was too good to be true. I'll post the text here so that everyone can read how this scam operates - it's unfortunately brilliant in its operation so that unsuspecting, honest people like yourself can easily be duped.

My guess is that you have no recourse. The landlord may not even know about this scam and my guess is that he doesn't. If Western Union is given information that you voluntarily provided, e.g. transaction number, sender and recipient with some type of ID, they may not hae been negligent. You were scammed into providing these people with information they should not have had, e.g. transaction number, names and information of each party, etc.

This is a scam and a well known one. You NEVER ever wire money to anyone outside of your country. This supposed landlord probably did not even own the property nor have any rights to it. Some scammers are even going to legit websites that sell cars, getting VIN info and putting up their own advertisements. People think that since there a VIN attached to the fraudulent ad its legit.

Sorry you were scammed but there probably is not much recourse for you.

Just browsed my email address and saw your message. I hope you are still interested in viewing my apt. The apartment is still available. As I said also in my ad, the apt. is located on xxxxx 72nd Street New York, NY 10023. It is located on the 4th floor. It has 2 bedrooms, 2 bathrooms, 1 kitchen and 1 living room. The apartment is furnished (you can see the furniture in the photos), but I can have all of it sent into storage if you want to bring your own. The apartment has an beautiful view. The neighbors are good people, and helpful if needed.
First of all I would like to tell you more about myself. I am the owner of the apartment, and want to find the right tenant. I'm 32 years old and I just got married here in Canada, and i am going to leave here for at least 4 years. I am a business woman .. I work for a company called Amway ( don't know if you have ever heard of it) and I just reached the highest rank (Diamond - a dream come true) and I earn about 15.000$/month.. So.. the apartment is free from 2 months (minimum) up to 4 years(maximum). I will come to the US only 3-4 times per year to visit my parents in Orlando FL and we can meet whenever you have an emergency and you need my help.
The rent for 1 month is $1,400 (for the whole apartment) including all utilities (water, electricity, Internet, cable, parking, air conditioning, fireplace, dishwasher, garbage disposal, microwave, refrigerator).
You can move in the apt. in the same day when you receive the keys and we sign the contract. I must tell you that I am only interested in serious tenants and that I will only close the deal face to face. I want to be sure that I have found the right person because I don't want to travel for nothing. So.. i want to close the deal face to face.
I would like to ask you some questions, such as... how long do you plan to stay in my apartment? Where do you work? Also please give me more information about yourself, anything that you might think I should know about (a picture would be nice).
Tomorrow i will ask my financial adviser to give me some piece of advice, because a week ago i traveled to New York to show my apartment to someone who seemed very interested ..But when i arrived ... He told me that he has only $1.100...and tried to negotiate the rent.. So he wasted my time and my money for nothing...

Once again thank you, and I look forward to hearing from you soon. Please tell me if this is what are you looking for and reply if you are truly interested in the apt.

Good luck,

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Thank you for your reply. I'm very glad to hear that you are interested in my apartment. Sorry for the delay, but i am very busy with my job. So... As I have informed you before, the price you will pay for one month of rent will be US $1,400 . I want to receive the monthly rent to my bank account, so I hope it will be no problem for you to wire the money to my bank account. The apartment is ready for you, you will only need to receive the keys and the contract.
Obviously we need a way to complete this deal, that will allow us to make sure we receive what we are after. My financial adviser found a way for us to complete the deal safe and fast. I am proposing something: I can come to New York for a few days if I am sure that I have found the right person because I do not want to make the trip for nothing, like I said, I have a lot of work to do here.

Here is what we can do:
- You can do a Money Gram transfer of $1,400. You will be the receiver and someone you know and trust will be the sender.. Hope you understand.. (mother/father, brother, sister ...) You will be the receiver in the Money Gram transfer and only you can pick up the money. I will call and check if the transfer really exist so i can make sure that you have the money... There is a small fee for transferring the money, but in case you agree to continue, I will be more than happy to give you the amount paid by you back so don't worry about this. Sorry for being so skeptical, but i had some bad experiences in the past.. Hope you understand my situation..
- After you have done the transfer you will let me know and I will call MoneyGram to check it. If they confirm that everything is ok, I will come to meet and show you the apartment. We will then discuss more about the furniture (if you like to keep it or not) How you will send me the monthly rent and stuff like that... After you inspect the apartment and sign the contract you can go at a MoneyGram office and pick up the money and pay me the first month rent. I don't want to come for nothing so I think this is fair for both of us.
I am sure that you understand that I don't want to travel so many miles for nothing.
So let me know if this is ok for you and if you still want the apartment.

Waiting for your reply,

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Firstly I would like to appologise for the ate reply. The apartment is still available, and I agree to rent it to you.
About the Money Gram transfer... I am sure you'll find one at your local bank or at the Post Office.
After you have done the transfer please send me the following details so I can check them:
1. Refference #
2. Sender's name
3. Receiver's name

I can come and meet you any day this week, whenever is best for you.

This is a brilliant scam. The need for confirming a cash transfer is ridiculous, especially if you think about it. But there is this whole perception of willing to take much less to get the right tenant. So you decide "hey, I'm just sending money to myself - what is safer than that?" The problem is that you've let this third party know all the pertinent details. Personally, I think that these money sending services in general don't provide much protection against fraud but here is the information about the little you need to pick up the money! PS - I thought that the part about having the potential applicant to the apartment send a picture is clever too if you think about it.

MoneyGram Frequently Asked Questions

Only the Receiver can pick up the money, right?

The person Receiving the MoneyGram Transfer must present a valid photo ID and know information about the Transfer. Fraud perpetrators may suggest that a Transfer be sent with a relative or friend's name as the Receiver to show "good faith." The fraud perpetrators may be able to obtain valid-appearing ID to collect the funds. Sending such a Transfer is a red flag, and should cause concern about its being a legitimate deal.

In order to hold Western Union liable for negligence, you'd need to show that the person picking up the money was able to do so without any of the requirements that they have for valid identification. This is the relevant part of the Western Union FAQ about picking up money at an agent location.

FAQs about receiving money

1. How do I pick up a money transfer?

1. Complete the To Receive Money form and give it to the Agent clerk with your government-issued identification card
2. Some countries require the receiver to provide the Money Transfer Control Number (MTCN) from your receipt to pick up the money.
3. Review and sign your receipt
4. Receive your money and a copy of the receipt

Learn more about receiving money at an Agent location Top

2. What do I need to bring to pick up money in person?
Bring one of the following forms of government-issued photo identification:

* Driver's license
* State identification
* Current passport or tourist card
* Government identification with photograph
* Alien identification

Top

3. How can I find out if a money transfer is ready to pick up?
You can check the status from the "Transfer Status" link at the top of any page on our Web site. You'll need to type in the sender's name and the Money Transfer Control Number (MTCN) from the transaction. Top

4. How does Western Union pay out money transfers?
Generally, we pay your money transfer with cash but in some cases, pay out may be made in the form of a money transfer check or pay out card.

Plz help

Dear Sir,

I sent money via Western Union and did NOT provide the MCTN, test question and answer. I have been jacked for $6300 USD.

But I read on WU's website (before sending payment), the payee must provide the MCTN. It states it "is required."

I put WU in the same class as Citibank or HSBC, so I believed their website, but my money was stolen and the "appeal" was rejected.

Do I have any recourse, or must I just take it? I would not jump out of an airplane without a parachute, and certainly would not send money if the word "required" was not used.

Thank you for your time and I eagerly await your reply, as this is a lot of money for me. I am not an attorney , but this seems pretty clear-cut to me.

BEST WISHES

Western Union does not require the receiver to provide the MTCN.

They have several ways for people to retrieve cash.

You should never use any money xfer service to send money to someone you do not know.

Any of those services advise potential senders if that proviso.




Sent from my iPhone using Tapatalk

My question is how was the money stolen? Did someone other than the intended recipient get it?

tpajet said:

My question is how was the money stolen? Did someone other than the intended recipient get it?

Click to expand...

Yes, the conman's "honest" cohort.

It works like the pigeon drop scam.

These con-artists always try to legitamize their fraud by bringing in an honest appearing, shill.

We need more details. Whenever I read Western Union being used as the institution of choice to transfer funds larger than a few hundred dollars, I think "it must be a scam" before I conduct any transaction. I'm not sure how the poster knows that the location did not comply with the rules and we haven't been told who was paid off. But as army judge points out, there are ways they might get around the "requirements."

The above information about the scams is a good one. I don't see the correspondence in there where they ask you for a picture - just to make sure you're a "clean cut looking, responsible person." Then they probably use that picture to make some type of fake ID out of it, who knows. We need the poster to provide more details. I still wouldn't put Western Union anywhere near a class of established banks for procedure, reliability, etc.