The FTC alleged that Cliq processed transactions for high-risk merchants and did not follow underwriting and investigation obligations required by a prior court order. A federal judge found civil contempt and imposed $6.5 million in sanctions, reflecting how payment intermediaries can facilitate fraud at scale.

According to the FTC, Cliq Inc. and its operators landed in contempt after the company’s payment-processing practices allegedly departed from the safeguards imposed by a prior 2015 court order. The FTC said the court found that Cliq unlawfully processed transactions for high-risk merchants and failed to conduct required underwriting and investigative steps before processing certain merchant activity. These requirements are central to reducing fraud risk in payment ecosystems. Without robust merchant vetting, risk teams, and follow-through investigations, scam operators can appear legitimate long enough to collect payments—especially when fraudsters rely on rapid iteration, throwaway storefronts, and merchant profiles that can change quickly. The FTC’s announcement emphasized that contempt is an enforcement escalation: it goes beyond initial allegations to penalize noncompliance with a court directive intended to protect consumers. The $6.5 million sanctions highlight the financial consequences of failing to implement compliance controls that are designed to keep scam-enabling payment flows from continuing. The case also serves as a warning to intermediaries that “order compliance” is assessed in practice, not in documentation alone. For consumers and businesses, the outcome is relevant because it aims to disrupt payment routes commonly used in online fraud, including scenarios that involve chargeback abuse and identity-linked scams.