The Color of Money: Watch What You Wire

In another twist on this con, someone is told they are being hired to visit stores to evaluate MoneyGram money transfer operations. In this elaborate ruse, the con artists send consumers a cashier's check, telling them to deposit it in their checking account, and then send most of the money back using a money transfer location. Initially, the check might clear. But later when the victim's bank discovers the deception, the person is on the hook for the fraudulent check.

This type of fraud nearly hit home for Leibowitz. He said someone called his mother claiming she had won a $1 million lottery. Leibowitz said when his mother told the person she wanted to check with her son, who works for the FTC, the caller hung up.

"My own mother could have been the victim of this scam," he said. "People want to believe the best."

The FTC's complaint alleges that MoneyGram disregarded warnings from law enforcement officials and even its own employees that rampant fraud was being conducted over its network. The Minneapolis-based MoneyGram has 180,000 agents with locations in nearly 190 countries and territories.

As part of the settlement, MoneyGram agreed to beef up its anti-fraud program. The FTC said the company must conduct background checks on prospective agents; educate and train its employees about consumer fraud; institute agent monitoring; and discipline agents who don't comply with the rules. The order also requires MoneyGram to provide a clear and conspicuous warning on the front of all its money transfer forms.

Michielutti said that, among other things, the company has more than doubled the size of its anti-fraud department and has developed new consumer-fraud training for its agents and employees.

"The more our employees know about the latest scams affecting our business and hurting our customers, the better prepared they are to be champions in helping to fight this criminal activity," Michielutti said.

"If there is one message that could come out of this it's that consumers should be very skeptical of someone who wants them to do a wire transfer," Leibowitz said.

The safest action: Don't wire money to someone you don't know.