Financial crime is a widespread concern among Americans, with four in 10 saying, in a new Treasury Department-commissioned survey, that they have been victims of identity theft or know someone who has.
But the survey also reveals that people often leave themselves open to financial crimes – even in their own households – by using paper checks, rather than direct deposit.
The survey was sponsored by U.S. Department of the Treasury’s Financial Management Service on behalf of its Go Direct campaign, which encourages people who receive Social Security and other federal benefits by paper check to protect themselves from financial crimes by switching to direct deposit.
The release of the survey findings coincides with the recent passage of a U.S. Senate resolution declaring March 2007 “Go Direct Month” to raise awareness about the safety advantages of direct deposit, particularly for older and vulnerable Americans.
“Millions of Americans are affected by identity theft and other financial crimes, but there are steps people can take to increase their financial safety — such as choosing direct deposit,” says Kenneth R. Papaj, Commissioner of Treasury’s Financial Management Service.
“Last year 57,000 checks issued by Treasury were fraudulently endorsed, while problems with direct deposit payments were negligible. In fact, while paper checks make up about 20 percent of the total Social Security and Supplemental Security Income payments, they account for more than 90 percent of reported payment problems.”