The popular global money transfer service MoneyGram International has been down for days due to a cybersecurity issue, reported the financial technology company.
When MoneyGram detected the issue it immediately launched an investigation, the company said in a post on X, and proactively went offline to protect its systems. It’s working with experts and law enforcement to get back online and resume business.
“We recognize the importance and urgency of this matter to our customers and partners,” the company stated.
A spokesperson for MoneyGram did not immediately respond to questions about when service is expected to be restored nor how the issue was detected.
The Dallas-based firm is widely used by immigrants across the U.S. and North Texas to send remittances to their home country and to pay bills. Mexico is the second-highest recipient of remittances in the world, behind only India, according to the Federal Reserve Bank of Dallas.
Social media users have been posting online about not being able to send or receive money due to the outage.
MoneyGram surveyed 1,000 people in the U.S. who send money across borders in a report published earlier this month. For those sending money abroad to loved ones, nearly half said it helped cover food costs and more than a third wired money for emergency expenses.
These consumers reported that their money was meant to help cope with inflation, geopolitical issues like war and violence and to deal with the impacts of natural disasters or climate-related problems.
In releasing the remittance study on Sept. 12, MoneyGram Chairman and CEO Alex Holmes said as the industry evolves, so does the company’s commitment to developing innovative digital solutions to shape cross-border money transfers.
“Our responsibility is to stay deeply attuned to both senders and receivers around the world, ensuring our network and services not only meet but anticipate their most critical needs each and every day,” Holmes stated.
Remittances from the U.S. to Mexico reached a record $55.9 billion in 2022, according to a report published by the Dallas Fed last fall. The growth of remittances to Mexico was likely thanks to strong employment in the U.S. construction sector, a leading employer of Mexican migrants, reported the Dallas Fed.
The average monthly remittance to Mexico was $390 in 2022.
There are more than 50 million MoneyGram users in 200-plus countries and territories, according to the firm. Each year it processes more than $200 billion.
