Direct Express Card Fraud

If you are frustrated with Direct Express Card Fraud Investigation, you are not alone. This is a problem for many cardholders. We regularly review our blog comments to understand what our readers are talking about, especially to understand common complaints and try and help card holders find solutions to those issues or point them in the right direction. One of the growing complaints we’ve been hearing is regarding cardholders whose debit cards are hacked by fraudsters and then they literally have to go through a lot of hassle with Direct Express to get the fraud investigated and more importantly, the money returned to their card. In some cases, card holder are not reimbursed for the money stolen because they are told it is their fault that the account was compromised. This issue is causing financial hardships for those affected. Here is what we found when we looked into the issue.

Direct Express Card Fraud – Money Stolen From Card

This is how this fraud typically happens: Card holder discovers that money has been illegally spent on their card, either over a long period of time or very quickly. Since it is an unauthorized transaction, the card holder then calls Direct Express Customer Service to complain. That’s when things get interesting. If you call customer service, they will probably tell you to fill out a fraud packet and send back. This is usually mailed to you, so you have to wait about 10 business days to get this packet in the mail, which is unusually long. Some people have reported that their fraud packets never arrive and they have to call customer service again, go through the whole issue again and get another packet mailed. By this time, more than 2 weeks has passed since the incident was first reported. That’s just frustrating and annoying, especially for people whose account has been depleted by fraudsters and they need the money ASAP.

What to Expect from Direct Express Fraud Investigation

From what we have gathered, it takes Direct Express 45-90 days to complete a fraud investigation after you’ve completed the fraud packet. Any attempt to get them to speed up the process is usually unsuccessful as customer service just repeats the timeline to you over and over again. They will even tell you to borrow money to hold you over while they complete the investigation, even though there is no guarantee you will be reimbursed for the money that is taken out.

What Direct Express Says About Their Card

If you watch the promotion video above, one of the selling points of the debit card option instead of a check is the security of the card. If the card is being promoted as secure, why is it so hard to get reimbursed when it is clear that the account has been compromised and funds have been illegally taken? The promotion also says that the MONEY IS INSURED BY THE FDIC. If the money is FDIC Insured, why is it so hard to get reimbursed for fraudulent purchases? Any bank or credit card company will first put the money in the customer’s account, then do an investigation. If they find that there was indeed fraud, then the matter is resolved. If they find that the customer actually used the money and is reporting it as fraud, then they take back the money from the account. We think Direct Express should do the same, rather than putting people through a long investigation process where they are out of money and have to wait 90 days to get their money back.

As you see from the image below, the card is advertised as safer than cash. If it is safer, why it is so hard to get your money back when the money is stolen from the account?

"Direct Express Card Fraud Investigation

Here is what Direct Express says on their website about FDIC Insurance:

“1.3 WILL MY SOCIAL SECURITY AND SUPPLEMENTAL SECURITY INCOME BENEFITS BE SAFE?

Yes, with the Direct Express® card, your money is FDIC-insured up to the maximum legal limit. In addition, the consumer protections required by Regulation E (12 CFR 205) and MasterCard® Zero Liability (exceptions may apply), which protect you against unauthorized use of your card when promptly reported, apply to your debit card account. Finally, if your card is lost or stolen, it will be replaced.”

Have you experienced Direct Express Card Fraud? Did you call Direct Express and report the issue? What was your experience? Tell us in the comments section below.

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