Media Kit
Talk to us

News Dec 16, 2013 - 3:04:17 PM

CT DRS overhauls refund debit card program

By Connecticut Department of Revenue Services (DRS)

Font size: Small Big
Email this article
 Printer friendly page
Share this article:
facebook Yahoo! MyWeb Digg reddit Furl Blinklist Spurl
Buy the "As seen on" mug
Hartford, CT - Following a limited but still serious data breach by JP Morgan Chase and what Department of Revenue Services (DRS) Commissioner Kevin Sullivan calls “the bank’s wholly unacceptable failure to provide a timely response,” the agency announced today a series of steps to reassure state taxpayers. DRS is:

· Immediately suspending the debit card program and issuing paper checks for income tax refunds to several thousand taxpayers for the rest of the year.

· Offering taxpayers in 2014 the choice to receive refund by direct deposit, debit card or paper check – with the understanding that direct deposit assures the promptest refund and paper checks the least prompt.

· Offering taxpayers the choice of phone activation or on-line activation until the bank website breach is fully detailed and future security is assured.
· Re-opening the contract as soon as possible to seek new proposals and competitive bids from vendors interested in providing future debit card services to state taxpayers.

· Working with the Governor’s Counsel, Attorney General, State Treasurer, and other affected state agencies to demand a more complete accounting for the security breach as well as JP Morgan Chase’s lack of immediate notice to the state and very slow response in notifying debit cardholders.

· Determining all available remedies to recover added state costs and any cardholder damages resulting from the bank security breach.

DRS has already required JP Morgan Chase to notify the approximately 7,000 affected refund debit cardholders by email and mail, reissue cards, reverse cards and have paper checks issued if requested by cardholders, and offer two years of free credit security protection.

JP Morgan Chase is under contract with the State Treasurer on behalf of several state agencies to provide debit card and other banking services. The bank reports that suspicious activity on its UCard website server was first noticed in early September and the site was probably first hacked in July of this year. The intrusion was confirmed in mid-September but mitigation was not fully completed until more than a week later. JP Morgan Chase did not notify the state until December 3, and then took over a week to begin notifying cardholders.

Taxpayer information was put at risk for refund debit cardholders accessing the JP Morgan Chase website during the period from July to September. Potentially compromised taxpayer data includes social security numbers, passwords, password confirmation questions and, if transfers were made to other financial institutions, perhaps personal banking information.

Said Commissioner Sullivan, “Using debit cards for most refunds still makes sense and saves nearly $300,000 every year. We have every confidence, however, that the State Treasurer will not let JP Morgan Chase off the hook for the consequences of this breach. While only affecting about 2% of Connecticut income tax refund debit cardholders, that’s bad enough. But even worse is the bank’s disregard of its obligations to provide immediate notification to the state and prompt notification to the cardholders.

“The use of debit cards for many state purposes, including tax refunds, still makes business sense and costs less. However, at DRS, we owe it to the public to seek a new contract that assures security and far greater responsiveness.”

© Copyright by Some articles and pictures posted on our website, as indicated by their bylines, were submitted as press releases and do not necessarily reflect the position and opinion of, Stamford Plus magazine, Canaiden LLC or any of its associated entities. Articles may have been edited for brevity and grammar. Photos without a credit line are "contributed photos".

[an error occurred while processing this directive]

Note: We reserve the right to delete posts at any time if we decide that they are offensive or distasteful.
CT's first national register building opens the door to Hartford's future
CT ready for opening of fishing season
Creativity Catapults Stamford Teams to Odyssey World Finals
Hundreds to Walk for Stronger, Healthier Babies in Stamford
Enjoy Easter on the Avenue at Morello Italian Bistro

Top of Page
 is part of the Canaiden Online Media Network.
Stamford Plus Online | Norwalk Plus Online | | Best of Norwalk | Best of Stamford | Hauterfly Magazine |

Copyright ©2005-2010 Canaiden,LLC All Rights Reserved.