MoneyGram Offers Three Keys to Safe Money Transfers

Money transfers are a safe, fast and efficient way to send money to friends, loved ones and business associates across the globe, particularly for those who are not fully served by traditional financial institutions. Yet, like any financial transaction involving people, there is always an element of risk. That’s why MoneyGram International, Inc. (NYSE:MGI), a leading global money transfer company, is urging consumers to become informed and use discretion to safeguard themselves against common scams.

"Before anyone considers using a money transfer service,” said Dennis Wildsmith, vice president of transaction services and fraud prevention at MoneyGram, "they should remember three simple rules we call ‘know, show and throw.’” MoneyGram suggests that before initiating a money transfer, consumers should:

• Know – Always know the person to whom you are sending money. Never send money to strangers.
• Show – Never show or share information about your money transfer to anyone but the recipient.
• Throw – Discard or throw away any offers that promise easy ways to earn money, especially if the offers require you to send money before earning money.

"MoneyGram takes the safety of our customers' money very seriously,” noted Wildsmith. "For example, last year we implemented a new alert system in our safety controls to help determine the risk level during the moment of transaction. This important safeguard helped prevent thousands of fraud incidents from occurring, saving our customers more than $56 million to date.”

The United States conducts the most money transfers, including the most money sent abroad – $48 billion – of any other nation, according to 2009 statistics from the World Bank.

MoneyGram has also launched a special web site – www.MoneyGram-PreventFraud.com – to educate people about common scams, and to provide important tools for consumers to avoid becoming a victim of fraud. According to the site, the five most common types of money fraud consumers should guard against are:

• Sweepstakes and Lottery Scams – Scam artists often use the lure of a valuable prize to attract consumers, saying they’ve won a contest, but must wire money for customs, taxes or processing fees. The consumer wire the money only to find there was no sweepstake to win.
• Grandparent Scams – Some scam artists claim to be a family member, law enforcement official, or medical worker, often contacting a grandparent asking for money to be wired to help a grandchild in an emergency situation. The grandparent wires the money, but no family member was actually in need.
• Check Overpayment Scams – Some scam artists will respond to a classified ad and offer to use a check to pay for the item you’re selling. The check exceeds the amount of the item, and you’re asked to send the excess amount by money transfer. After you send the money, the original check bounces.
• Mystery Shopper Scams – You’re invited to work as a mystery shopper to evaluate the customer service of a money transfer company. You’re given a check to deposit, and then asked to send the funds back by money transfer. The check turns out to be fraudulent, and you’re out the sum of the money transfer.
• Relationship Scam – Someone with whom you’ve been communicating on a dating site moves to another country for work, and asks you to wire money. The requests continue until you realize the relationship is a scam.

Consumers who suspect fraud associated with money transfers should contact their local law enforcement. If MoneyGram was used to wire a money transfer as a result of a scam, consumers should call 1-800-MONEYGRAM (800-666-3946).

About MoneyGram International
MoneyGram International, a leading money transfer company, enables consumers who are not fully served by traditional financial institutions to meet their financial needs. MoneyGram offers bill payment services in the United States and money transfer services worldwide through a global network of 244,000 agent locations – including retailers, international post offices and financial institutions – in 192 countries and territories. To learn more about money transfer or bill payment at an agent location or online, please visit http://www.moneygram.com or connect with us on Facebook.