MoneyGram Consumer Fraud Course 3.10 Updated August 2009

2. MoneyGram Consumer Fraud Course OBJECTIVES MoneyGram�s purpose is to help people and businesses by providing affordable, reliable and convenient payment services. Our customers expect our services to be safe and reliable�this includes protecting them against fraud. MoneyGram does not want its money orders, money transfers and other financial services to be used for fraudulent purposes. As a MoneyGram agent, you and your employees need to understand how to identify and stop fraudulent transactions from being conducted by your business.

3. Overview WHAT IS MONEYGRAM DOING TO PREVENT FRAUD? MoneyGram has taken a Stand Against Scams. We have updated our send forms, telephone lines and websites with warnings about current scams. We�ve also provided literature to agents and customers about the latest scams. We collaborate with and sponsor consumer education efforts such as the Fake Check Task Force and the AARP Fraud Awareness Call Centers to build public awareness of fraud scams. We partner with local, state and federal law enforcement around the world to pursue arrests and convictions of fraud perpetrators. We have placed geographic restrictions limiting where a transaction can be received. We monitor agents who receive complaints of consumer fraud as well as locate and analyze trends of consumer fraud that is reported from a variety of sources.

4. Overview WHAT ARE YOUR OBLIGATIONS IN PREVENTING CONSUMER FRAUD? As a MoneyGram agent, it is important for you and your employees to understand how to: Detect consumer fraud. Assist in (or conduct) any fraud investigations. Prevent, report, and otherwise handle suspicious transactions and fraud-induced transactions. Failure to assist in preventing, reporting and investigating consumer fraud may result in: Additional required training. Reductions in your location�s transaction limits. Suspension or termination of your MoneyGram account.

5. Overview CONSUMER FRAUD

6. Overview COMMON SIGNS OF A POSSIBLE FRAUDULENT TRANSACTION: Victims are often elderly. Customers may be unusually excited or have a sense of urgency. Destinations don�t make sense. Who does the customer know at the destination? There is no apparent family connection between the sender and receiver. One receiver is using different IDs. Customers with forged or false IDs. One receiver picking up multiple transactions from senders across the country. A receiver who immediately sends the money from multiple receive transactions to a third party. Customers sending money to a person they haven�t actually met, to pay for travel. Customers sending money for an Internet purchase for a �too-good-to-be-true� deal. If you are suspicious of the transaction, ASK QUESTIONS. If you have reason to believe that a customer is a victim of fraud or a perpetrator of fraud, DO NOT process the transaction.

7. Overview CONSUMER FRAUD

8. Internet Purchase Scams HOW IT WORKS Customers are led to believe they are purchasing an item from a legitimate company or seller through the Internet. The customer purchases an item on the Internet and is instructed to make a payment through MoneyGram. The suspect receives the money but no merchandise is ever received by the customer.

9. Internet Purchase Scams Scenarios

10. Internet Purchase Scams TIPS TO IDENTIFY AN INTERNET PURCHASE SCAM The customer does not know the receiver. The customer includes a message on the transaction, indicating that the money is for an Internet purchase, perhaps citing the website and the item number.

11. Internet Purchase Scams AS THE MONEYGRAM AGENT, WHAT SHOULD I DO? Ask if the customer knows the receiver. What is their relationship? Ask the customer what the purpose of the transaction is. MoneyGram cautions against sending payments to Internet sellers that the customer does not have a history with. MoneyGram is not an escrow service MoneyGram cannot guarantee receipt of goods / services from the seller If you have good reason to believe that the customer has been victimized by an Internet purchase scam, DO NOT process the transaction.

12. Person-in-Need Scams HOW IT WORKS Customers are tricked into providing emergency funds to a person posing as a relative or friend who is in urgent need of funds.

13. Person-in-Need Scams Scenarios

14. Person-in-Need Scams TIPS TO IDENTIFY A PERSON-IN-NEEDS SCAM The victim is often elderly. The customer is convinced that he/she is acquainted with the person making the request, although the customer doesn�t appear to know much about the reason for the request. Transactions are typically sent to Canada. Amounts are usually under USD$3,000.

15. Person-in-Need Scams AS THE MONEYGRAM AGENT, WHAT SHOULD I DO? Ask if the customer knows the receiver. What is their relationship? Ask the customer if he/she has confirmed that the person in need who placed the call or sent the e-mail is who they claim to be. Has the customer spoken to other family members or friends to validate that the incident is real? If you have good reason to believe that the customer has been victimized by a person-in-need scam, DO NOT process the transaction.

16. Lottery / Sweepstakes Scams HOW IT WORKS Customers are tricked into believing they have won a lottery prize or sweepstakes, even though they did not purchase a ticket for the lottery or enter a sweepstakes drawing. Victims are notified by e-mail that their e-mail address was selected as the winner of a lottery or sweepstakes. In order to receive the winnings, the customer must send money to pay fees for processing, insurance, customs, etc.

17. Lottery / Sweepstakes Scams Scenarios

18. Lottery / Sweepstakes Scams TIPS TO IDENTIFY A LOTTERY / SWEEPSTAKES SCAM Victims are often elderly. The customer may appear excited about the transaction. There is a sense of urgency about sending the money. The customer may tell you that he/she has won a lottery or sweepstakes drawing and must send the fees to collect the prize. The check or money order sent to �winners� is actually fraudulent. Victims are typically instructed to send money to Canada, Netherlands, Jamaica, Israel, Germany, Costa Rica, Nigeria, Spain or Great Britain. However, not all transactions sent to these countries are fraud-related. The customer is unsure of who he/she is sending the money to or why he/she is sending money. The customer reveals that he/she attempted to send money through another service but was denied.

19. Lottery / Sweepstakes Scams AS THE MONEYGRAM AGENT, WHAT SHOULD I DO? Ask the customer how his/her name was entered in the lottery or sweepstakes. Tell the customer that: You have to play to win. Unless the customer purchased a lottery ticket or entered a sweepstakes, he/she DID NOT win a prize. Legitimate lotteries do not directly notify winners. Winners present their winning ticket to claim a prize. It is not possible to select a winner from a random �e-mail drawing.� It is illegal for a real lottery to charge any type of up-front fee (courier charges, bank charges, various �certificates,� etc.). Legitimate lotteries deduct fees and taxes from the prize pay-out. Legitimate sweepstakes are not allowed to require a purchase or collect fees up front. Ask if the customer knows the receiver. What is their relationship? If you have good reason to believe that the customer has been victimized by a lottery / sweepstakes scam, DO NOT process the transaction.

20. Employment / Secret Shopper Scams HOW IT WORKS Customers are tricked into believing they have found their dream job working part-time from home. Victims may be contacted by e-mail or they locate these ads themselves on various job-hunting websites. The ads promise to provide substantial incomes with minimal effort. A popular �dream job� scam is an offer for customers to act as Secret Shoppers and send money transfer transactions to test the money transfer company�s processes.

21. Employment / Secret Shopper Scams Scenarios

22. Employment / Secret Shopper Scams TIPS TO IDENTIFY AN EMPLOYMENT / SECRET SHOPPER SCAM Often the victim has recently lost his/her job or has fallen into hardship where the additional income is desperately needed. If it sounds too good to be true, it probably is NOT true. The customer may appear excited about the transaction. There is a sense of urgency about sending the money. The customer may tell you that he/she has finally found a �dream job�. The check or money order sent to cover the customer�s costs is actually fraudulent. Victims are often instructed to send money to Canada, Jamaica, Germany, Costa Rica, Nigeria, Spain or Great Britain. However, not all transactions sent to these countries are fraud-related. Sometimes employment scams are within the Unites States. The customer is unsure of who he/she is sending the money to or why he/she is sending money. The customer reveals that he/she attempted to send money through another service but was denied. Secret shopper scams may be difficult to detect because the sender is purposely trying to keep the nature of the transaction a secret.

23. Employment / Secret Shopper Scams As the MoneyGram agent, what should I do? Ask the customer how he/she found the job. Ask the customer if he/she received a check from the employer to cover the transaction they are attempting to make. Ask the customer how he/she knows the person the transaction is being sent to. What is their relationship? If you have good reason to believe that the customer has been victimized by an employment / secret shopper scam, DO NOT process the transaction.

24. Loan and Investment Scams HOW IT WORKS A customer attempts to secure a loan or investment, unaware that the company they have contacted is fraudulent. A customer responds to a newspaper or Internet advertisement for a low-rate loan or high-rate investment. After responding, the customer is told to send money through MoneyGram to pay for insurance, the first loan payment or the purchase of the investment.

25. Loan and Investment Scams Scenarios

26. Loan and Investment Scams TIPS TO IDENTIFY A LOAN OR INVESTMENT SCAM The customer doesn�t know the person he/she is sending money to. The transaction may be sent to Canada or the United States. The customer includes a message on the transaction, indicating that the money is for a loan or an investment.

27. Loan and Investment Scams As the MoneyGram agent, what should I do? Ask if the customer knows the receiver. What is their relationship? Ask the customer what the purpose of the transaction is. If you have good reason to believe that the customer has been victimized by a loan or investment scam, DO NOT process the transaction.

28. Romance Scams HOW IT WORKS There are various forms of Romance Scams known as on-line dating, social networking and �mail bride� services. All of these scams involve tricking the customer into providing funds to a person the customer believes he/she has a relationship with.

29. Romance Scams Scenarios

30. Romance Scams TIPS TO IDENTIFY A ROMANCE SCAM The customer is excited about the transaction. The customer may have sent money to the recipient on other occasions. The customer tells you he/she is sending money to someone he/she met on the Internet. Payments are typically sent to Jamaica, Nigeria, Ghana, Canada, Netherlands, Israel, Germany, Costa Rica, Spain or Great Britain. However, not all transactions sent to these countries are fraud-related.

31. Romance Scams AS THE MONEYGRAM AGENT, WHAT SHOULD I DO? Ask if the customer knows the receiver. What is their relationship? Ask the customer what the purpose of the transaction is. If you have good reason to believe that the customer has been victimized by a romance scam, DO NOT process the transaction.

32. Responding to Consumer Fraud � Send Side IF I SUSPECT CONSUMER FRAUD ON THE �SEND SIDE� OF THE TRANSACTION, WHAT SHOULD I DO? Know your customer. Ask questions if you are suspicious about the activity. �Do you know the person you�re sending money to?� �Did you verify the situation with another family member before sending emergency money to the person who contacted you? Are you sure the person who contacted you is really in need?� �Did you play the lottery or sweepstakes? Did you purchase a ticket or enter a drawing?� �Did you initiate the contact with the person you�re sending money to or did they contact you?� �Are you sure the person you�re sending money to actually works for the company they claim to represent? Have you verified that it is a reputable company?� �What is the purpose of the transaction?� Continued�

33. Responding to Consumer Fraud � Send Side IF I SUSPECT CONSUMER FRAUD ON THE �SEND SIDE� OF THE TRANSACTION, WHAT SHOULD I DO? (continued) If you believe that the customer may be a victim of consumer fraud, DO NOT process the transaction. Report consumer fraud to MoneyGram. Contact MoneyGram by phone (use the MoneyGram call center that services your geographic area) or e-mail (fraudalert@moneygram.com). Cooperate with consumer fraud investigations conducted by MoneyGram. When requested by MoneyGram, provide Send and Receive documents immediately. Your cooperation will help prevent customers, agents and MoneyGram from being victimized by fraudsters!

34. Responding to Consumer Fraud � Send Side

35. Responding to Consumer Fraud - Receive Side HOW DO I IDENTIFY �RECEIVE SIDE� CONSUMER FRAUD? For every person who is victimized by consumer fraud, there is a perpetrator on the receive side of the transaction, picking up the money. � An individual repeatedly picks up transactions from multiple senders in multiple locations (states / countries). An individual attempts to pick up a transaction in a state other than where it was intended to be sent (MoneyGram restricts �redirected� transactions to help prevent consumer fraud). An individual receives multiple transactions and immediately wants to send all of the funds to a new location. There doesn�t appear to be a family connection between the receiver and the sender (different last names). There doesn�t appear to be a business purpose for the transaction. There are so many senders that is seems unlikely that the receiver actually knows that number of people.

36. Responding to Consumer Fraud - Receive Side IF I SUSPECT CONSUMER FRAUD ON THE �RECEIVE SIDE� OF THE TRANSACTION, WHAT SHOULD I DO? � Know your customer. Ask questions if you are suspicious about the activity. �What is the purpose of the transaction?� �How do you know the senders?�� �What line of business are you in?� If you believe that the receive customer may be a perpetrator of consumer fraud, DO NOT process the transaction. Tell the customer that there is a problem and he/she will need to contact MoneyGram. Immediately contact MoneyGram by phone (use the MoneyGram call center that services your geographic area) or e-mail (fraudalert@moneygram.com) to report the consumer fraud incident. Cooperate with consumer fraud investigations conducted by MoneyGram. Provide Send and Receive forms immediately upon request. Your cooperation will help prevent customers, agents and MoneyGram from being victimized by fraudsters!

37. Responding to Consumer Fraud Know your customer. Ask questions if you are suspicious about the activity. If you believe that the customer may be a victim of consumer fraud, DO NOT process the transaction. If you believe that the customer may be a perpetrator of consumer fraud, DO NOT process the transaction. Report consumer fraud to MoneyGram by phone (use the MoneyGram call center that services your geographic area) or e-mail (fraudalert@moneygram.com). Cooperate with MoneyGram investigations of consumer fraud. Provide your customer with a list of victim resources (next slide).

38. Victim Resources United States FBI (find local offices at www.fbi.gov) Federal Trade Commission (includes an International section) FTC website www.ftc.gov About a company or business practice, call toll-free at 1-877-FTC-HELP (382-4357) About ID theft, call toll-free at 1-877-ID-Theft (438-4338) About spam or phishing, forward unsolicited commercial e-mails to spam@uce.gov AARP consumer alerts: http://www.aarp.org/money/consumer Internet Crime Compliant Center (partnership of FBI, National White Collar Crime Center & Bureau of Justice Assistance): www.ic3.gov OnGuardOnline (tips, tests & training on Internet security): www.onguardonline.gov Looks Too Good To Be True.com (Internet fraud education): http://www.lookstoogoodtobetrue.com/ Fake Checks.org www.fakechecks.org Do Not Call Registry Register online at WWW.DONOTCALL.GOV Call toll-free, at 1-888-382-1222 (TTY 1-866-290-4236), from the number you wish to register. Applies to both land-lines and cellular telephones.

39. Self Quiz Please complete the MoneyGram Consumer Fraud Quiz. If you identify consumer fraud after a transaction has been sent, but before it is received, there is nothing you can do to assist the customer. True False Which of the following are ways you can help protect against consumer fraud? Know your customer. Ask questions, If you suspect a transaction may be fraudulent, DO NOT process the transaction. Report suspected consumer fraud to MoneyGram All of the above. Consumer fraud is the potential or actual theft of funds from a consumer by means of deceit, trickery or manipulation. True. False. Common signs of consumer fraud include: The customer is elderly. The customer is unusually excited or has a sense of urgency about sending the transaction. The sender and receiver don�t appear to know each other. The customer presents a fake or forged ID. All of the above.

40. Self Quiz A customer tells you that he needs to send fees immediately to someone in Canada. The customer was surprised because he just got his new e-mail address last week and he suddenly won a prize when his e-mail address was selected. What should you do? Send the transaction right away. Maybe the prize is a marketing plan by the Internet service provider. Tell the customer that lotteries / sweepstakes don�t work that way and that he is victim of fraud. Refuse the transaction. Report the consumer fraud to MoneyGram. Both B and C A customer has been coming into your location for a number of weeks. On each visit, she picks up several transactions from all over the country. When you ask her about the nature of the transactions, she becomes evasive. Should you be concerned? No. The customer�s business is personal. Yes. The customer may be perpetrating a fraud on multiple people. Report your suspicions to MoneyGram. As a MoneyGram agent, it is important for me and my employees to: Be able to identify consumer fraud. Report instances of consumer fraud involving MoneyGram products to MoneyGram. Provide copies of Send and Receive forms to MoneyGram immediately upon request and participate in consumer fraud investigations. All of the above. Preventing a fraudulent transaction from being completed protects my business, the victimized customer and MoneyGram. True. False.

41. Self Quiz In the next slide you can check your answers! You should get at least 6 correct answers to pass the quiz. If you scored fewer than 6 correct answers, please review the course again.

42. Self Quiz � ANSWERS If you identify consumer fraud after a transaction has been sent, but before it is received, there is nothing you can do to assist the customer. The correct answer is False. Call MoneyGram and ask that the transaction be placed on hold. Advise the customer to call MoneyGram to obtain a refund. Which of the following are ways you can help protect against consumer fraud? The correct answer is E. All of the above. Know your customer. Ask questions, If you suspect a transactions may be fraudulent, DO NOT process the transaction. Report suspected consumer fraud to MoneyGram. Consumer fraud is the potential or actual theft of funds from a consumer by means of deceit, trickery or manipulation. The correct answer is True. Common signs of consumer fraud include: The correct answer is E. All of the above. The customer is elderly. The customer is unusually excited or has a sense of urgency about sending the transaction. The sender and receiver don�t appear to know each other. The customer presents a fake or forged ID.

43. Self Quiz - ANSWERS A customer tells you that he needs to send fees immediately to someone in Canada. The customer was surprised because he just got his new e-mail address last week and he suddenly won a prize when his e-mail address was selected. What should you do? The correct answer is D (both B & C). Tell the customer that lotteries / sweepstakes don�t work that way and that he is victim of fraud. Refuse the transaction. Report the consumer fraud to MoneyGram. A customer has been coming into your location for a number of weeks. On each visit, she picks up several transactions from all over the country. When you ask her about the nature of the transactions, she becomes evasive. Should you be concerned? The correct answer is Yes; you should be concerned. The customer may be perpetrating a fraud on multiple people. Report your suspicions to MoneyGram, As a MoneyGram agent, it is important for me and my employees to: The correct answer is E. All of the above. Be able to identify consumer fraud. Report instances of consumer fraud involving MoneyGram products to MoneyGram. Provide copies of Send and Receive forms to MoneyGram immediately upon request and participate in consumer fraud investigations. Preventing a fraudulent transaction from being completed protects my business, the victimized customer and MoneyGram. The correct answer is True.

44. Course Complete Congratulations! You�ve completed MoneyGram's Consumer Fraud course Consumer Fraud and Agent Fraud training is available at MoneyGram University www.moneygramu.com