TFG Card Solutions Adopts ARM Insight’s RefundShield Service to Stop Tax Refund Fraud in its Tracks

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RefundShield Service to Combat Multi-Billion Dollar Fraudulent Tax Refund Problem and Return Funds to Tax Payers.

TFG Card Solutions | Payroll Card Company | Direct Deposit Paycards
"Once the money is out the door, it is almost impossible to get it back,” IRS inspector general J. Russell George told CNBC recently. “The bad guys know that the IRS is unable to address every single allegation of tax fraud it has."

TFG Card Solutions, a leader in payroll card services, has chosen ARM Insight’s Refund Shield service to monitor and stop tax refund fraud in advance of the upcoming tax refund season. ARM Insight, a leader in transaction-based analytics and services, will provide its turn-key RefundShield services to TFG, in order to identify and stop fraudsters from withdrawing unearned refunds from their paycards, and to return those funds to US tax payers.

According to the July 19, 2012 report by the Treasury Inspector General for Tax Administration, it is expected that the IRS alone (excluding state taxing agencies) could issue over $21 billion in fraudulent tax refunds in the next five years, with much of the refunds being electronically deposited onto reloadable payroll debit cards.

“Once the money is out the door, it is almost impossible to get it back,” IRS inspector general J. Russell George told CNBC recently. “The bad guys know that the IRS is unable, given the limited number of staff it has, to address every single allegation of tax fraud it has.”

RefundShield is a cross-platform service, which can spot and stop fraudulent activities across various card issuers, processors and program managers in a timely manner, before the funds have the chance to go “out the door”. By combining a holistic view of accounts across any number of issuers, with its proprietary risk analysis and best-of-breed ID Verification services, ARM is able to act in a timely manner to stop the fraudulent refunds before the cardholder is able to withdraw the funds.

“Stopping the refunds from being issued in the first place is obviously the ultimate solution. The next best thing however, is to stop the funds from being withdrawn, and to return the funds to US tax payers,” said Randy Koch, ARM Insight’s Chief Operating Officer. “ARM’s proprietary approach, including our real-time cross-platform view, is the most effective and cost-efficient way to address the prepaid card industry’s unique risk factors.”

“The complexity of fraud, which involves the use of multiple cards, rapid withdrawal of funds, movement of money between accounts, and use of multiple devices to access accounts, makes it almost impossible for any single issuer or program manager to tackle”, said Burke Rice, EVP of TFG Card Solutions.

“Stopping such complex fraud requires the use of a third party with deep experience in managing multiple data sources and analyzing complex prepaid transactions on a timely basis. Simply put, we have chosen to stay one step ahead of the fraudsters, and our experience with ARM is that they are the partner to get us there. We are proud to lead the industry in minimizing a major drain on American tax dollars.”

About ARM Insight
Founded in 2010, ARM Insight Inc. is based in Portland, Oregon. ARM offers issuers and marketing partners a variety of services, based on transaction-level analytics, and proprietary services. These applications include fraud detection, risk scoring, targeted offers, as well as loyalty and rewards, all based on deep transactional analytics. Leveraging ARM’s APIs, partners can create and offer a variety of card-linked applications to consumers, publishers, retailers and issuers in a matter of days. For more information, visit http://www.arminsight.com.

About TFG Card Solutions, Inc.
TFG offers free payroll debit card solutions that help businesses of all sizes increase direct deposit participation, maximizing their current direct deposit system and empowering unbanked employees. Payroll debit cards save both the business and its employees money every single pay period. For more information, visit http://www.tfgcard.com.

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