Nineteen states in the U.S.A. use a system called Eppicard to distribute payments. Many Eppicard users are being targeted by scammers. Are Eppicards an effective way for states to distribute benefits?
How Eppicard is used by state governments
The Eppicard system is a third-party “servicing” company that provides financial services for states. In 19 states, Eppicards are used to provide child support, unemployment and state benefit payments. For the most part, an Eppicard is much like a debit card – it is attached to an account that is electronically debited when the account is used.
Eppicard scams are increasing in frequency
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. If Eppicard customers use the fake link or text message to “update” information, the scam artist empties their accounts. The FBI and state benefit agencies have issued warnings to rely only on www.eppicard.com or the state agency for information on Eppicard accounts.
Should Eppicards be used for benefits?
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. Eppicard charges as much as $ 1 for every ATM transaction. If you call Eppicard customer service, the company deducts money from your account. Card replacement, denial of funds, overdraft fees and even balance inquiries end up with charges. Are citizens really served by a company that charges state benefit recipients to access the money that is rightfully theirs?. .
