Due to misunderstanding about the checks’ design and worries about potential frauds, residents of places including California, Texas, and Virginia have been wrongly tossing away their stimulus checks, valued at $1,050 and $600 respectively. According to NBC News, the checks are prepaid debit cards encased in envelopes that resemble junk mail, not genuine checks.
The IRS has started adopting a similar approach of mailing out stimulus checks in the form of debit cards, so this problem is not simply restricted to state payments. The government selected this form of payment delivery to expedite payment distribution during the epidemic when people needed the money for necessities, especially since many were having financial difficulties as a result of losing their jobs. Additionally, distributing stimulus payments as debit cards rather than checks boosts security since it reduces the likelihood that crooks skilled at check-washing and stealing money meant for other individuals will seize them.
Stimulus Checks Creating Confusion
Many locals claim that rather than being conned and spending their time on possible scammers, they concluded the delivery was junk mail or a hoax and threw the envelope in the garbage or shredder. Consumers have also been forewarned by the Federal Trade Commission (FTC) about “refund and recovery” frauds, which has kept them on their toes.
According to The Washington Post, the government switched to debit cards at first during the epidemic to speed up payment delivery since people needed the money for necessities as many were struggling financially as a result of job loss. Additionally, there is some protection in doing so since thieves who have become highly skilled at check washing are less likely to seize mail that doesn’t appear like a check and take money meant for someone else. Fortunately, states and the government have phone lines if you mistakenly throw away or shred your stimulus checks thinking it was junk mail, as reported by GOBankingRates.com.
