Bank of America fined $225 million over unemployment benefits program

LTC Eugene Chu
..."CNBC’s investigation found that states like California and Nevada saw an outsized share of so-called transaction fraud during the pandemic because, with few exceptions, their unemployment insurance was distributed through debit cards without chips, meaning there was a lower level of security.

Card experts told CNBC that prepaid government cards typically lack chips because they can be more expensive to produce.

The CFPB said in its release today that under the Electronic Fund Transfer Act, a financial institution must conduct a “prompt, reasonable, and timely investigation” when there’s been an error related to transferring money, including prepaid cards.

“Taxpayers relied on banks to distribute needed funds to families and small businesses to rescue the economy from collapse when the pandemic hit, said CFPB Director Rohit Chopra. “Bank of America failed to live up to its legal obligations. And when it got overwhelmed, instead of stepping up, it stepped back.”

well that is a lot!

Thanks for sharing this information
@LTC Eugene Chu
Seems a large amount of ‘stimulus’ funding was fraudulent and missed used. I read somewhere prisoners in some states received stimulus money