American Express to Pay Over $246 Million in Settlements for Fraudulent Marketing and Misrepresentation

The company resolves criminal and civil allegations tied to deceptive practices in wire transfer and credit card products, including false tax advice and recordkeeping violations.

American Express has agreed to pay more than $246 million to settle criminal and civil cases linked to deceptive marketing and fraudulent practices involving wire transfer and credit card products.
The company entered a Non-Prosecution Agreement (NPA) with the U.S. Attorney’s Office, paying a $77.7 million fine and forfeiting $60.7 million in revenue tied to fraudulent wire transfer products marketed between 2018 and 2021.
A $108.7 million civil penalty was also imposed for violations of federal laws, including deceptive marketing of credit cards and the use of false Employer Identification Numbers (EINs) between 2014 and 2017.
Investigations revealed that American Express misled small business customers with false claims about tax benefits of wire transfer fees and rewards points, which were marketed as tax-free despite their ineligibility for deduction.
The company has taken remedial measures since 2021, including discontinuing the fraudulent products, terminating involved employees, and strengthening compliance and internal audit processes.

U.S. Department of Justice