How Walmart’s Financial Services Became a Fraud Magnet

Customers were duped out of more than $1 billion because of holes in Walmart’s financial systems, through schemes involving money transfers and gift cards. You can become a victim even if you never even speak to a scammer.
Read our full investigation to understand how the scams work: propub.li/3Vj74Lw
// Timestamps //
0:00 - The scammers are out here
0:15 - How-to: The Walmart scheme
1:14 - History of facilitating mass fraud
2:00 - Walmart resists cracking down
2:39 - Walmart’s defense
3:17 - Latest scheme: Card draining
-
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[@Lilo-A]

How hard would it be to stop allowing gift cards to purchase more gift cards? Some system modifications? Some employee training? WM claims it has no responsibility to consumers because they are making money off of it.

[@outlawbillionairez9780]

They don't care.

[@Tom21356]

Wow! Thank you for the great info 🙏🏻

[@outlawbillionairez9780]

I watched a lot of computer channels about this years ago. I wondered why they only had victims but cards at Walmart.

[@Mr.Boring_Man]

Walmart generates over $600 billion a year. This sounds like naive people and Walmart not catching 100% of the incidents. A new regulation is needed so Walmart's Financial Services (and other GC companies) should better coordinate with the victims bank to validate and confirm the fraud so the fraud claim can finalized sooner and funds reimbursed. Sucks they have to do any work but they technically approved the transaction to begin all of this. The bank and/or Walmart will likely take the haircut or it'll incentive better crack downs. Spending a few million to save a billion makes sense.

[@olyokie]

Sounds like Walmart themselves.

[@DOLfirst]

No

[@canaans1]

The fact no one is safe could not be more true. As an industry professional I have seen people who literally create prevention software fall victim. They are getting more advanced every day and it only takes a single moment to do the wrong thing. Fun fact though. The most recent quarter is the first quarter where reported losses from scams have dropped. Not the volume of scams , but the volume of losses, meaning for the first time with the increased scrutiny on banks as well as companies like wallmart there is a difference being made. Hopefully this is a turning point. We also need more political pressure on some countries where its basically cool to do if you pay a few bucks to the authorities.

[@trinaroe5132]

Easy way to not be a victim is to not buy Walmart gift cards or any other company’s gift cards that they sell. If you receive a gift of a Walmart gift card or a gift card that might have been purchased there check your balance immediately and frequently and use the card right away, don’t save it for a special occasion or purchase. If the balance is zero from the start let Walmart know (if it is a Walmart card or you know it was purchased there because a receipt was attached to show the amount) and let the gift giver know they’ve been scammed.

[@terrancekayton007]

😢shame on them. Greed the root of all evil.

[@DearProfessorRF]

WALMART strikes back. I still understand how people can keep on supporting this business .

[@russh6414]

Stay aware and informed and dont let anyone rip you off - David Horowitz

[@whysocurious7366]

If you let someone rip you off, that’s not getting ripping off. Part of a scam being a scam is the lack of consent.

[@TheSmarq17]

I'm sorry. But, you have to let yourself to be scammed like this. I seriously can't blame Walmart for this. Yes, they can strengthen their customer protections for sure, also, they can try and be a little more helpful overall. But. People. Show some common sense. Please.

[@cymeriandesigns]

There are lots of dumb/naive people in the world. Being that way doesn't mean they deserve to be prey. If Walmart can take reasonable steps to make scamming them more difficult, it's okay to require them to do so.

[@TheSmarq17]

@@cymeriandesigns Agreed. I said as much. To drop all the blame on Walmart though sends. to me, a chilling message on who is ultimately responsible though. That said, any help that Walmart can provide should be done without hesitation.

[@WallyTony]

What is this Tik Tok looking bs?