Warren: Comerica fraudulence programs significance of safety fix in prepaid system
Sen. Elizabeth Warren, D-Mass., desires 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 in addition to U.S. federal federal federal federal government — once 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 accounts to get into 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 into the page, a draft content of that was obtained by US Banker.
United states Banker first reported in August that Comerica had power down its Cardless Benefit Access function after fraudsters drained records owned by retirees whom get Social protection benefits and veterans whom count on impairment repayments. The cardless function had permitted Direct Express users to withdraw their funds should they lost their card or had been far from their property state.