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 cardholders find solutions to those issues or point them in the right direction.

One of the growing complaints we’ve been hearing regarding cardholders whose debit cards are hacked by fraudsters is the trouble they go through with Direct Express to get the fraud investigated and more importantly, the money returned to their card.

In some cases, cardholders 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.

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The short video below explains the 5 ways to avoid Direct Express fraud and how to secure your account from scammers online.

Direct Express Card Fraud – Money Stolen From Card

This is how this fraud typically happens:

Cardholder 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 cardholder 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 it 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 have 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

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

Is Direct Express Card FDIC Insured?

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


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.”

Summary – Direct Express Card Fraud

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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6 thoughts on “Direct Express Card Fraud”

  1. I have to wait to get an investigation packet in the mail, fill it out and send it back. It will take 45-90 days for investigation to end and they will mail me a letter with the results.

  2. i just had 1000 ivr tranfer from my account iam disabled veteran and they are giving the run around now i cant pay my mortgage. can somebody please help me. if they being throgh the same situition and how they got the money back,

  3. I I had my expense check card stolen from me and $2,400 was spent I called Direct Express customer service they were of no help to me they gave me the run-around I also got the hang up after the hold I can’t believe that this is occurring I’m a victim of fraud and now I’m late on paying my rent don’t have money for food this is crazy

  4. My direct express card was hacked on December 2nd of last year (2017). 840 dollars was taken out of my account on that day I filed a complaint with direct express back in December and have still not received any of that money back as of today, February,2, 2018. It’s been over 45 days since they started their investigation. I want to file a lawsuit against them and comerica bank. I think they are working against me and all the others who have been hacked. How do I start the legal process of filing a dispute against them?

  5. I had the exact same thing happen yesterday! Their debt resolution process is in violation of the Electronic Code of Federal Regulations and the FDIC COnsumer Protection Act. If the FDIC is insuring our money then why are they not doing anything to to regulate this crooked company that is just letting the money be taken? I caught it with in 4 hours and they not only could not tell me where it went or who it went to…they said that it was already sent and could not be stopped. All bank transfers take 24-72 hours. It doesn’t make any sense. How can they initiate or approve a transfer to nobody, nowhere?!?! ANd worse, it is happening all of the time which means they are aware of the security breach and have done nothing to
    resolve it. At what point are they held liable for their failed attempt at securing our money?

  6. I had the same happen to me,they got express is a sham,transferring my money back to my checking account.

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