First Data Will Pay $40 Million in FTC Deal Over Consumer Scams
- Payment processor let fraudsters rip off the unwary, FTC says
- Trade Commission says firm ignored “warnings, direct evidence”
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First Data Merchant Services LLC and a former executive agreed to pay more than $40 million to settle a claim by the Federal Trade Commission that the company processed payments and laundered credit card transactions for scams targeting hundreds of thousands of consumers.
The agency alleged that ex-vice president Chi “Vincent” Ko, through his former company First Pay Solutions, opened hundreds of fake merchant accounts and shell companies to take payments from the unwary.