🍁 Nuvei🇨🇦 to pay USD 4.9 million as part of a settlement

🍁 Nuvei🇨🇦 to pay USD 4.9 million as part of a settlement

The U.S. Federal Trade Commission (FTC) accused the Canadian fintech company Nuvei of maintaining payment processing accounts for merchants that, according to the agency, it knew or should have known were involved in fraudulent practices.

➡️ In brief: on September 3, the FTC filed a lawsuit against Nuvei, alleging that the company opened and maintained payment processing accounts for merchants it knew or should have known were engaged in deceptive practices. Nuveiagreed to settle the case without admitting or denying the allegations.

➡️ Now, the FTC's details:

➡️ Nuvei allegedly facilitated fraudulent telemarketing operations by providing payment processing services to Reimage, a company that allegedly operated deceptive technical support schemes.

➡️ In 2020, Visa warned Nuvei that Reimage was involved in a fraudulent technical support scheme. According to the FTC's complaint, Nuvei continued processing payments for the company despite the warning.

➡️ As a result, more than USD 30 million in consumer payments were processed for Reimage between 2017 and 2023, according to the FTC.

➡️ Nuvei Technologies Inc., Nuvei's U.S. subsidiary, also allegedly opened and maintained merchant accounts for other businesses accused of deceptive practices, including DK Automation and American Tax Service, against which the FTC had previously taken enforcement action.

➡️ In total: under the settlement, Nuvei will pay USD 4.85 million, which will be used to provide redress to consumers. The company will also be required to implement enhanced merchant screening and monitoring, including additional screening and investigation of certain high-risk merchants.

📢 Nuvei's comments
The company remains committed to regulatory compliance, has strengthened its compliance procedures in recent years and is already implementing the obligations established under the settlement.

➡️ Context: Nuvei is a Canadian fintech company headquartered in Montreal and founded in 2003 under the name Pivotal Payments. The company supports more than 700 payment methods and 150 currencies, providing acquiring services across 200 markets. In June, Nuvei acquired Payoneer for USD 2.75 billion. The company has a controversial reputation: it has faced allegations involving revenue overstatement, conflicts of interest and links to the bankrupt cryptocurrency exchange FTX. The company rejects all such allegations.

#news #cryptocurrency #fraud 🎭

🎭 From local bank transfers to Apple Pay worldwide: payment solutions for high-risk sectors at PayPlanet @pay_planet