From Nasdaq:

ProPublica investigation uncovers Walmart’s involvement in a fraud network using gift cards and money laundering. Victims, including a retired teacher, were scammed out of thousands. Walmart, named in the scheme, is implicated in over $1 billion in fraud losses from 2013 to 2022, according to the FTC. The company is facing a lawsuit and is accused of being negligent in scam prevention.

The convicted ringleader, Qinbin Chen, used Walmart gift cards to launder approximately $7 million. Walmart employees lacked proper training and anti-fraud measures, leading to these scams. Despite multiple warnings, Walmart allegedly ignored the misuse of their services. Walmart insists that fraud is “reasonably avoidable by consumers” and the lawsuit against them is unjust.

Chen, who has been laundering Walmart gift cards for five years, was found guilty on all charges and faces sentencing soon. Walmart has expanded its financial services, but doubts arise about their ability to manage them effectively due to compliance issues. These issues could impact related stocks such as Amazon and Target, as well as related ETFs. Yet, concerns remain about Walmart’s capability to manage its services effectively.



Read more: Walmart’s Financial Services Embroiled In Frauds Costing Consumers Billions Of Dollars: Report