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Digital Identity, Security & Online Fraud

Allied Wallet's USD 110 mln fraud charges settled with FTC

Monday 10 June 2019 | 12:40 PM CET

A report by the Financial Times has revealed that Allied Wallet settled with the Federal Trade Commission (FTC) over fraud and money laundering charges.

Allied Wallet is an online payment provider and a client of Wirecard, and the settlement scrutinises concerns about AML practices at Wirecard. As per the FTC, Allied Wallet aided in the scamming of upwards of USD 110 million from people using pyramid schemes and illegal debt collection.

In addition, Allied Wallet was also accused of setting up fake shell companies and websites with the aim to hide its activities. The FTC said the company used shell companies in the UK to hide non-EU merchants, thus enabling US merchants to evade the regulatory framework of the US financial system. Moreover, it used Wirecard as an ‘acquirer,’ however, Wirecard commented that measures were taken when noticing any irregularities or suspicious transaction patterns.

More: Link
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