Nineteen states in the U.S.A. use a system called Eppicard to distribute payments. Many Eppicard users are being targeted by scammers. Should states be using Eppicards to distribute benefits?
The use of an Eppicard
States contract with the private company that runs Eppicard . . In general, an Eppicard works very much like a debit card – the payment is deposited into an Eppicard account, and then the money is debited electronically when the card is used at an ATM or store.
Eppicards targeted by phishing
In Ohio, many Eppicard users are being targeted by e-mail and text message phishing scams. These messages tell users they need to update the information associated with their Eppicard. The Eppicard users are told that they need to update their information in order to get a personal loan or continue accessing their account. Once the scammer has the information for the Eppicard, they empty the account. Warnings have been issued by numerous agencies, warning that only the official website should be relied on.
Eppicard for benefits not a good idea?
The company that operates Eppicard is a contractor. Because they work just like a debit card, and look just like a debit card, they do offer some benefits to those who get paid with these cards. However, Eppicard has garnered multiple complaints for business practices that look more like a Rush Card than a public service. It can cost as much as $ 1 to put through an ATM transaction. If you call Eppicard customer service, the company deducts money from your account. Something as simple as a balance inquiry can lead to a charge on your account – so can replacing a card, having a transaction denied, or other standard transactions. Are citizens really served by a company that charges state benefit recipients to access the money that is rightfully theirs?. Most states, though, do provide some kind of alternative to the Eppicard.
