Some Suffer After Social Security Debit Cards Hacked During Target Breach
On March 1st, 2013, the federal government completely phased out paper checks in an attempt to ensure the safety of all benefits payments. Recipients of any federal benefits can either sign up for direct deposit, or they can receive benefits through a debit card issued by the federal government. The change affects a small number of recipients – currently, 93% of Social Security and Supplemental Security Income payments are paid electronically.
However, some Social Security recipients reported last year that they were concerned about the security of the switch. Checks could be stolen from the mail, but as technology becomes more sophisticated, so do thieves. Phone scams, phishing emails, and unscrupulous relatives can all easily access Social Security payments through bank deposits or, worse, hacking the debit cards of Social Security recipients.
In fact, the recent Target data breach has affected some Social Security recipients. Marie Self of Cartersville, GA, who receives Social Security disability benefits for herself and her disabled grandchildren, reported that her debit card was compromised in the Target data breach. The Treasury Department automatically canceled her card, Self reports, and stated that they would issue her a new one, but after three weeks, she has not received it.
“I remember just locking myself in my bedroom so the children wouldn’t seem me cry, thinking, ‘What am I going to do? I can’t provide for [my grandchildren]. When am I going to get these cards?’” Self said.
Self has called the toll free number on the back of her old debit card repeatedly, but she has been told that her card’s delivery has been delayed “by the tremendous backlog of cards that had to be reissued after the Target data breach.”
A spokesman for the Treasury Department said that three to four million debit cards have been issued as part of the Social Security Administration’s switch to electronic-only payments. He said that 1/3 of all Americans have been affected by the Target data breach, so it is safe to assume that around 1 million Social Security debit cards will have to be reissued.
Direct Express worked with the Treasury Department to set up a special policy for Social Security debit card holders – if the card holder reports fraud or hacking of their account within 90 days (one month longer than the average policy), then the card holder is not liable for more than $500 in losses.
The Target breach occurred between November and December of last year – peak shopping season – so Social Security debit card holders are nearing the end of their extended reporting time.
Unfortunately, if multiple Social Security recipients have experienced this fraud, there could be a backlog in distributing cards. Walt Henderson, manager of the Treasury Department’s Direct Express debit card program, said, “There is no hold up in replacing cards. Cards are replaced according to a schedule so as not to interrupt the use of the card by the cardholder if they are expecting a benefit payment,” he stated in an email to WSB Radio News. “Oftentimes, individual circumstances may exist that are not reflective of the entire card population.”
But for people like Marie Self, who need their Social Security benefits to survive, any delay could be excruciating.
The Strom Law Firm Can Help with Social Security Questions and Concerns
Social Security can be complex, but we understand that you need your benefits. We will put our years of experience to work for you to ensure that you have the representation necessary to actively pursue your claim. Call the attorneys at the Strom Law Firm today to discuss your Social Security Disability or Supplemental Security Income case today. We will be glad to discuss any questions you may have during our free, confidential consultation. Call the experienced attorneys at the Strom Law Firm at (803)252-4800.
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