MoneyGram expressed its “shock and disappointment” regarding the Post Office’s portrayal of the recent contract breakdown, which resulted in the removal of money transfer services from thousands of branches.
The company confirmed that the UK is the only country where its services have yet to resume following a significant cyber attack. Computer Weekly reported earlier this week that the Post Office notified subpostmasters just a day in advance before terminating its contract with MoneyGram. The Post Office claimed that the US-based financial service provider had declined a short contract extension offer.
In a direct communication to subpostmasters, MoneyGram reiterated its stance, stating it was “shocked and disappointed” by the Post Office’s announcement and asserted that it believed a “binding agreement for a new 12-month extension with the Post Office” was in place. A spokesperson for MoneyGram commented to Computer Weekly, “We are disappointed to see how the UK Post Office has represented the situation.”
MoneyGram, a fintech company that enables users to transfer money, pay bills, and trade in cryptocurrencies, has had to suspend its services due to a continuing cybersecurity issue. This problem began on September 20, when customers reported difficulties, initially identified as a network outage affecting connectivity.
On Monday, the Post Office informed subpostmasters that services remain unavailable at thousands of Post Office branches across the UK while it reviews “the protective measures that MoneyGram has implemented following the incident.”
The Post Office noted that negotiations for a new contract were nearing completion before the cyber event occurred. It shared with subpostmasters, “Post Office and MoneyGram have been in contract negotiations since June this year and were expecting to finalize a new agreement to take effect from October 1, 2024. Unfortunately, the contracting process was in its final stages when the cyber attack occurred.”
In its letter to subpostmasters, MoneyGram rebutted this claim, stating, “Our cybersecurity experts have concluded that the incident has not impacted our agents’ systems. We are pleased to inform you that we have resumed operations in every country except the UK and are diligently working to restore services here.”
MoneyGram added, “It is unfortunate that the Post Office has adopted this position after a trusting partnership lasting over 25 years. We sincerely hope to continue the conversation with the Post Office and work collaboratively with subpostmasters in the future.”