Dallas • MoneyGram said Friday it will set up a $100 million compensation fund as part of a settlement of government allegations of fraud related to money-transfer scams from 2003 to 2009.
Under the terms of the deal with the U.S. Attorney's Office for the Middle District of Pennsylvania and the Department of Justice, MoneyGram International Inc. said it has also taken other steps to prevent more scams. These include adding more investigators and beefing up technology to detect fraud.
The payment services provider said it has terminated relationships with the agents suspected of masterminding the fraud. It said it has also overhauled its corporate compliance program and initiated a training program for agents to better sniff out and report scams.