Why Reporting Money Order Fraud by Phone vs Online Is NOT the Same (and Why That Matters)

A man in a hoodie carefully examines a money order while standing at a counter, with a clerk observing from behind the glass.

Back in November, my mom mailed a money order to pay for a fence vendor. Recently, she received a letter in the mail stating the payment was never received.

Mom found out the money order had been fraudulently cashed — just days after it was sent. After the starlting discovery, she called me to assist.

This wasn’t just frustrating — it opened my eyes to something bigger. When I started reporting the fraud, I discovered that the phone reporting experience and the online reporting experience were not the same. That gap could easily cost someone their money, especially someone unfamiliar with the process.

And here’s the bigger picture: According to research from the National Institute of Justice, financial fraud against older adults is a growing and serious national issue. Many incidents go unreported, and the complexity of reporting processes only makes that worse.

☎️ My Experience Calling the 1-800 Number (Phone Reporting)

When I called the number to check the status of the money order and report the fraud, the IVR (automated voice system) walked me through a very specific process:

1. Check the status of the money order using the serial number.

2. If the money order has been cashed, select the option to report fraud.

3. Before any fraud claim could even be started, I was told I must request a photocopy of the cashed money order.

4. I was given two options for the image request:

   • $18 for a digital copy (faster)

   • A mailed copy that takes longer but costs less

5. Only after receiving that image can you call back and file an actual fraud claim.

💬 What struck me was how absolute this step was. No photocopy = no fraud claim. There was no way around it.

🖥️ What Happened When I Tried Reporting Online (Website Experience)

Later, I went to MoneyGram’s website to see if I could report the same issue online. The experience was completely different.

I had to click through multiple sections to find “Report Fraud.” When I finally did:

• An emphasized box appeared asking, “Who’s reporting the fraud?”

• It then redirected me to a different customer service number listed in the disclaimer on the site to report the fraud instead of submitted the online form.

• This number was not the same one I originally called to check the money order and request the photocopy.

• It also included language about opting out of personal information (PII) sharing — something that was never mentioned when I called the first number.

⚠️ The difference matters:

• 📞 Phone: Guided, structured, forces image request.

• 💻 Online: Redirects to general number with vague language, no clear guidance on the photocopy step.

I can see how someone — especially someone older or less comfortable navigating online systems — could assume they’ve “reported fraud” online when they actually haven’t.

🔍 Why This Matters

This might sound like a small procedural issue — but it’s part of a much bigger problem.

According to NIJ research:

• 🧓 Older adults lose billions of dollars annually to financial fraud.

• 🫥 Only about 19% of older fraud victims report incidents to law enforcement.

• 💸 The average loss among older victims can exceed $1,200 per incident.

• 💔 Many victims experience emotional distress, broken trust, and family strain after being targeted.

When reporting processes are confusing or inconsistent, they amplify these vulnerabilities. A missed step — like not requesting the photocopy — could mean the difference between getting your money back or not.

Older adults are already at a disadvantage in many fraud cases due to factors like:

• Limited familiarity with digital processes

• Cognitive decline or memory issues

• Isolation or lack of support systems

• Reluctance to report fraud out of shame or fear

This is why clarity in reporting channels matters just as much as catching the fraud itself.

🪜 Next Steps (Part 2 Coming Soon…)

I plan to call MoneyGram’s fraud department again to clarify what happens next after the photocopy is requested, and what victims should expect when dealing with this type of fraud.

🎥 Watch Part 1 (Premiering 10/18/25 at 7:45PM): https://youtu.be/SV3xS_e41iM

📝 Read Part 2 (coming soon): I’ll update this blog once I complete the follow-up call.

👉🏽 Subscribe to my newsletter or follow JRMT Consulting on IG for updates when Part 2 drops.

🧠 Key Takeaways

• The phone and online reporting processes are not the same, and that can delay or derail a claim.

• If your money order was fraudulently cashed, request the image first — it’s the gateway to filing a claim.

• The online disclaimer number is different from the number I actually called to check the status and request the photocopy.

• Older adults are especially vulnerable to financial fraud — making clarity and access even more critical.

• Best practice: fill out your money orders completely, keep receipts, and mail using a trackable or secure method.

📲 Learn More & Protect Yourself

This real situation with my mom’s money order isn’t just a story — it’s a teaching moment.

1. Read the NIJ article on financial fraud against older adults to understand why this matters on a national scale.

2. Watch my YouTube segment for the full story behind this case.

3. Share this with someone who still uses money orders or may be more vulnerable to fraud.

Together, awareness + action can prevent someone else from losing their hard-earned money.

In Fraud Prevention We Trust,

- Dee

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Key Terms

1. Money Order: A prepaid financial instrument that functions like a check. It allows the sender to pay a set amount in advance, often used when the sender doesn’t have a checking account or wants a more secure payment method.
   

2. Cashed Money Order: When a recipient (or someone impersonating them) endorses and deposits or redeems the funds from the money order. Once cashed, recovery can be difficult if fraud occurred.
   

3. Photocopy (Image Request): A formal image of the cashed money order that shows who endorsed or deposited it. This document is often required to start a fraud claim with the issuing company.
   

4. Fraud Claim: A formal request made to the money order company (or bank) to investigate and attempt to recover funds after unauthorized or fraudulent activity.
   

5. IVR (Interactive Voice Response): An automated phone system that guides callers through menu options using voice prompts or keypad selections. This is often the first point of contact for reporting payment issues.
   

6. PII (Personally Identifiable Information): Information that can be used to identify an individual, such as name, address, Social Security number, or financial details. Some reporting systems allow you to opt out of sharing this information.
   

7. Financial Fraud: Any intentional deception involving money or financial transactions. In this context, it includes intercepting or cashing a money order without authorization.
   

8. Elder Fraud: A type of financial fraud that specifically targets older adults, often exploiting trust, limited digital literacy, or vulnerabilities to steal funds.
   

9. Red Flag: A warning sign or indicator of possible fraudulent activity, such as payments not received, unrecognized endorsements, or conflicting contact numbers.