FTC Settles with Nexway to Resolve Allegations of Credit Card Laundering for Telemarketing Scammers

Lori Kalani, Bernard Nash
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  • Nexway, Inc. and affiliated entities and individuals (collectively, “Nexway”) agreed to a settlement to resolve allegations that the multinational payment processing company allegedly violated the FTC Act and the Telemarketing Sales Rule (TSR) by laundering credit card payments for tech support scammers.
  • According to the complaint, which was filed by the DOJ on behalf of the FTC, Nexway allegedly provided its offshore tech support scammer clients with access to the U.S. credit card network. The company allegedly engaged in credit card laundering when it processed charges associated with these scammers through merchant accounts and then used those accounts to collect money from consumers on behalf of the scammers, despite knowing or consciously avoiding knowing that the scammers were engaging in deceptive telemarketing practices.
  • The settlements include a total monetary judgment of $16.5 million and a requirement that Nexway monitor its clients for violations of law and take action if their clients charge consumers without authorization or violate the TSR.
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