MoneyGram International, a major global money transfer service, announced on Monday (September 23) that it is actively trying to restore its financial transfer system, which has been offline for several days due to a cybersecurity issue.
The company, based in Dallas, Texas, is working closely with cybersecurity specialists and law enforcement to address the problem and return to normal business operations.
In a recent statement on social media, MoneyGram acknowledged the importance of this issue for its clients and partners.
MoneyGram Goes Offline
Reports of service outages began to surface on Saturday (September 21), with Caribbean remittance service Massy Remittance Services informing its customers via Facebook about the problems with MoneyGram.
As of late Monday afternoon, many users reported ongoing disruptions, as indicated by Downdetector, a platform that tracks user-reported service failures.
MoneyGram is an important service for many immigrants living in the United States. It helps people send money back to their home countries and pay bills. According to the Federal Reserve Bank of Dallas, Mexico and India are the two largest recipients of these money transfers.
In 2022, remittances sent from the U.S. to Mexico reached an impressive $55.9 billion. This increase is largely linked to strong job opportunities in the US construction sector, a major employer for many Mexican migrants. On average, a typical monthly remittance from the US to Mexico was reported to be around $390, according to The Dallas Morning News.
A recent survey from MoneyGram revealed that nearly 50% of its customers send money internationally to help family members buy food, while over one-third send funds for urgent expenses.
This survey highlights how important MoneyGram's services are to families facing financial challenges. Customers often send money to help with food costs, urgent bills, and other needs related to inflation and various crises, including natural disasters or conflicts.
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MoneyGram Customers Express Frustration
As the outage continues, users have taken to online platforms to express their frustration over the inability to send or receive money.
Many individuals depend on MoneyGram for financial support to their families, and delays can have significant impacts on their lives.
The company has yet to provide specific details regarding how the issue was discovered or when services will be fully restored. MoneyGram serves over 50 million customers across more than 200 countries and territories each year, handling more than $200 billion in transactions annually, said CBS News.
On September 12, MoneyGram Chairman and CEO Alex Holmes presented findings from a remittance study, emphasizing the company's commitment to creating innovative digital solutions to improve cross-border money transfers.
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