The U.S. Department of the Treasury recently announced the successful implementation of a data pilot project that has prevented and recovered $31 million in improper payments to deceased individuals over a five-month period.

This initiative reflects the federal government’s commitment to safeguarding public funds and paying the right person, in the right amount, at the right time. Leveraging advanced data analytics and cross-referencing multiple databases, the pilot program aimed to identify and halt improper payments before they were processed. Over the five-month period, the program not only prevented new improper payments, but also successfully recovered funds that had been previously disbursed in error.

The Direct Express® program also plays a role in safeguarding public funds. It offers significant cost and safety advantages over the paper check system it replaced to ensure unbanked federal beneficiaries receive their benefits safely and efficiently. Direct Express® is element of the US Treasury’s All Electronic initiative, which is projected to save $10 billion dollars every 10 years. When the program first started it was estimated that it would have cost the government approximately $66 million to send the 53 million checks that were replaced by Direct Express.

The digital nature of Direct Express® payments avoids costs associated with lost or stolen checks and removes the threat from counterfeit fraud. Its underpinning technology allows continuous monitoring of transactions to detect suspicious activities and prevent unauthorized access and stringent identity verification processes ensure that only eligible individuals receive benefits. On top of this, advanced encryption technologies protect sensitive information during transactions and Real-Time Alerts via the DXSM Mobile App provide immediate notifications to cardholders about unusual activities, enabling them to take prompt action if necessary.

These measures are essential in the effort reduce fraud and enhance the security of benefit payments, helping to ensure the integrity of government payments. As technology continues to evolve, so too will the methods employed by fraudsters. As a digital platform, Direct Express® is able to evolve alongside, with the potential to leverage the latest advancements in data analytics and security technologies to stay ahead of potential threats.

Safeguarding public funds is a responsibility that the U.S. Treasury takes extremely seriously. Direct Express® provides a robust technological tool in the toolkit used to fulfill that responsibility.

SOURCE: US TREASURY