Warren: Comerica fraudulence programs requirement for safety fix in prepaid system

Warren: Comerica fraudulence programs requirement for safety fix in prepaid system

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

In a letter to be delivered Thursday to Treasury Secretary Steven Mnuchin, Warren stated a huge selection of federal advantages recipients had been victims of fraudulence within the system administered by Comerica. Direct Express permits users without bank records to gain access to their funds through prepaid cards.

“The fraudulence detection and reimbursement procedure within the Direct Express system have to be analyzed with close scrutiny,” Warren wrote within the page, a draft content of that was 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 property state.

Comerica’s Direct Express system disperses approximately $3 billion in Social protection and impairment re payments to 4.5 million People in the us whom lack bank reports but whom get federal advantage payments electronically on prepaid debit cards. Continue reading “Warren: Comerica fraudulence programs requirement for safety fix in prepaid system”