Wiring money can be one of the fastest ways of delivering cash. However, Western Union’s failure to control its anti-money laundering security led to the loss of millions due to faulty transactions. Thousands of consumers fell victim to scams and illegal gambling. Even undocumented Chinese immigrants used the service to pay their smugglers.

Due to this lapse in policy, Western Union not only admitted to its failure in the prevention of wire fraud and money laundering, but the company agreed to pay $586 million in a settlement with the United States.

The settlement is one of many that the Obama administration completed before leaving office. The Federal Trade Commission and Department of Justice cracked down on a string of companies during the administration’s last weeks in office. This settlement is one of the largest against any money-service company.

The Department of Justice reported that the world’s largest money transfer company was the center of more than one scam. Millions were sent from undocumented immigrants to China for human smuggling. Yet, immigrants weren’t the only ones misusing the money transfer service.

Since Western Union is used in many stores and retailers, those places were also liable for frauds schemes that took place using the service. Many scammers posed as family members who needed money, or organizations that promised lottery winnings and other prizes. The victims, prompted by scammers, sent money through Western Unions whose agents in return profited a percentage.

It’s reported that these scams go back as far as 2004 through to 2012. Western Union’s aid in this scheme is evident by its lack of termination of the agents who knowingly keyed in fakes names, addresses, other information. Western Union is held liable for the agents who withheld the identity of individuals who scammed thousands out of the money.

Although the company announced around $500 million in fraudulent transactions during 2004 through 2012, it is estimated that its employees knew that number should have been higher than it was. In addition, a police force in 2004 was created to investigate agents who had more than 10 red flags for money transfers. However, despite this policy being available, it wasn’t used. More than 2,000 agents that should have been terminated, were kept on.

Back in 2010, Arizona State Police sent undercover officers posing as drug dealers to bribe Western Union agents. Agents in over 20 offices allowed the undercover officers to change names, falsify identification, and smudge fingerprints. Western Union settled that investigation by paying $97 million.