Warren: Comerica fraudulence shows importance of protection fix in prepaid system

Warren: Comerica fraudulence shows importance of protection fix in prepaid system

Sen. Elizabeth Warren, D-Mass., wishes the Treasury Department to boost fraudulence security into the Direct Express prepaid program — now a partnership between your Texas-based Comerica Bank therefore the U.S. federal government — if the system’s agreement 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 permits users without bank records to gain access to their funds through prepaid cards.

“The fraudulence detection and reimbursement procedure when you look at 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 safety and impairment re re payments to 4.5 million People in the us whom lack bank reports but whom get federal advantage re payments electronically on prepaid debit cards. Weiterlesen