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Warren: Comerica fraudulence programs significance of protection fix in prepaid system

Warren: Comerica fraudulence programs significance of protection fix in prepaid system

Sen. Elizabeth Warren, D-Mass., wishes the Treasury Department to improve fraudulence security when you look at the Direct Express program that is prepaid now a partnership amongst the Texas-based Comerica Bank plus the U.S. federal federal government — whenever system’s contract is rebid in 2020.

In a page become delivered to Treasury Secretary Steven Mnuchin, Warren said hundreds of federal benefits recipients were victims of fraud in the program administered by Comerica thursday. Direct Express enables users without bank reports to gain access to their funds through prepaid cards.

“The fraudulence detection and reimbursement procedure within the Direct Express system should be analyzed with close scrutiny,” Warren wrote into the page, a draft content of that has been obtained by US Banker.

United states Banker first reported in that Comerica had shut down its Cardless Benefit Access feature after fraudsters drained accounts belonging to retirees who receive Social Security benefits and veterans who rely on disability payments august. The cardless function had permitted Direct Express users to withdraw their funds when they destroyed their card or had been far from their house state.

Comerica’s Direct Express system disperses approximately $3 billion in Social protection and disability re re re payments to 4.5 million Us citizens whom don’t have bank reports but whom get federal advantage re payments electronically on prepaid debit cards.

Cardholders have alleged that Direct Express regularly declined to reimburse them after cash ended up being taken from their debit that is prepaid card. Читать далее