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Article: GAO Report: No Screening In FEMA Prepaid Program.(General Accountability Office, Federal Emergency Management Agency prepaid debit card program)
- Article from:
- American Banker
- Article date:
- April 24, 2006
- Author:
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A small prepaid debit card program the Federal Emergency Management Agency launched nearly eight months ago after Hurricane Katrina is still generating controversy.
The program lasted less than 24 hours before being cut off, but now a picture of widespread fraud and manipulation involving the cards is emerging. Some say the program is a case study on how not to implement an instant-issue prepaid program for emergencies.
A recent report from the Government Accountability Office, the accounting arm of Congress, shows how the FEMA cards spiraled out of financial control. Proper systems were not in place to verify the information and identities supplied by ...