Report Reveals True Costs for US Government Combatting $2.9bn Per Year in Fraudulent Benefit Claims
Innovative global cybersecurity company VST Enterprises inc., today announced the results of an exclusive study, examining the scale of US Electronic Benefit Transfer (EBT) fraud. Contributors to the report highlight the size of the problem and how cutting edge authentication technology is ready to take a front seat in the fight against fraud.
The report indicates that although reported fraud stands at $980m in the USA, actual levels of fraud stand at an estimated $2.9bn each year. US authorities spend $10.5bn countering this threat each year. Significantly, every dollar spent on these attempts is taken from the same fund used to run schools and provide healthcare.
With the right new technology to seamlessly identify eligible benefit claims at the point-of-sale, entitlement issues and fraud losses could be eliminated. Payment authentication company Shreeven Paytech has recently signed a deal to use VST Enterprises’ VCode® technology to provide strong authentication for the electronic benefit transfer system in India.
WANT TO BUILD A FINANCIAL EMPIRE?
Subscribe to the Global Banking & Finance Review Newsletter for FREE Get Access to Exclusive Reports to Save Time & Money
By using this form you agree with the storage and handling of your data by this website. We Will Not Spam, Rent, or Sell Your Information.
Louis-James Davis, CEO of VST Enterprises, contributed to the report. He commented: “The US is at breaking point when it comes to finding a solution to EBT fraud. Traditional card systems provided a cost-effective way for the EBT to be conducted, but as the cost of the issue rises, a new payment system to reduce levels of fraud is long overdue. With the widespread use of smartphones and NFC technology at the point-of-sale, it is time to move the EBT card to the cloud.”
Cybersecurity is a global issue that cuts across all industries and encompasses all electronic payments, including state benefits. The significance of the threat to such a critical piece of public sector infrastructure cannot be underestimated. VST Enterprises’ VCode® technology can provide instant authorization for EBT purchases, guaranteeing each purchase is made by those entitled to welfare.
To read more insight from this report, visit https://blog.vstenterprises.com/2017/02/15/electronic-benefit-transfer-white-paper/.