Conduent Implements Technologies to Help South Carolina EBT Cardholders Protect SNAP and Other Benefits from Fraud

Rhea-AI Summary

Conduent Incorporated (Nasdaq: CNDT) implements fraud-reducing technologies for South Carolina Department of Social Services to combat EBT fraud, enhancing security for government aid programs like SNAP. The technologies aim to protect beneficiaries and agencies nationwide from fraud, ensuring the efficient distribution of nutrition assistance and cash benefits. Conduent's advanced IVR system and ConnectEBT mobile app provide real-time monitoring and account protection, helping prevent unauthorized access to EBT accounts and suspicious transaction activities.

Information Security Analyst

From an information security perspective, the introduction of technologies to combat EBT fraud is a significant step towards safeguarding sensitive financial data and maintaining the integrity of government aid programs. Fraudulent activities can lead to financial losses for the state and distress for beneficiaries. The advanced interactive voice response (IVR) system technology that automatically detects suspicious call patterns is an intelligent use of anomaly detection. It is a proactive measure that can thwart fraudsters' attempts to access EBT account information. Moreover, the ability for beneficiaries to lock and unlock their benefits card provides an added layer of security, giving cardholders direct control to prevent unauthorized access.

However, the implementation of such security measures requires continuous updates to stay ahead of sophisticated fraud techniques. It is also essential to educate beneficiaries on using these features effectively to ensure they are empowered to protect their accounts. The real-time alert system for suspicious transactions is another commendable feature, as it enables immediate action, potentially minimizing the impact of any fraudulent activity. Overall, these security enhancements can lead to cost savings by reducing the amount of fraud and increasing trust in the system, which in turn can positively influence the perception of Conduent's services in the market.

Public Policy Analyst

The integration of anti-fraud technologies by Conduent into the South Carolina Department of Social Services' EBT program reflects a growing trend of public-private partnerships aimed at enhancing public service delivery. The focus on fraud prevention in SNAP and other cash benefits programs underscores the importance of program integrity to both the government and the public. By prioritizing the security of these programs, the state is not only protecting public funds but also ensuring that the intended recipients are the ones who benefit from these services.

While the technology presents clear advantages, it is important to consider the balance between security and accessibility. Overly stringent security measures could inadvertently create barriers for legitimate beneficiaries. Therefore, it is important to monitor the implementation to ensure that it does not lead to an increase in denied access for eligible individuals. Additionally, the success of such initiatives could encourage other states to adopt similar technologies, potentially standardizing anti-fraud measures across the country and leading to more efficient national guidelines for program protection.

Financial Services Consultant

The adoption of anti-fraud technology by Conduent for the South Carolina EBT program can be seen as a strategic move to enhance its value proposition in the competitive field of business solutions and services. By demonstrating the effectiveness of their fraud-prevention tools, Conduent may be in a better position to secure contracts with other states and expand its market share. This has potential implications for Conduent's financial performance and investor interest. The company's stock may react positively to the news as investors often look favorably upon innovations that promise cost savings and efficiency gains for government contracts.

However, it's important to assess the costs associated with the development and implementation of these technologies against the savings from reduced fraud. If the cost-benefit analysis is favorable, it could lead to higher margins and improved profitability for Conduent. Long-term, the company's reputation as a provider of secure and efficient solutions could lead to sustained growth. Still, investors should consider the scalability of the technology and the potential for widespread adoption among other states, as these factors will significantly impact the financial outcomes of such initiatives.

The technologies can help agencies and beneficiaries nationwide prevent EBT fraud targeting nutrition assistance and other cash-aid programs

FLORHAM PARK, N.J.--(BUSINESS WIRE)-- Conduent Incorporated (Nasdaq: CNDT), a global technology-led business solutions and services company, has implemented technologies for the South Carolina Department of Social Services (SCDSS) to help combat fraud and further enhance the security of the state’s Electronic Benefits Transfer (EBT) program. In South Carolina and other states, EBT fraud targeting the Supplemental Nutrition Assistance Program (SNAP) and other cash benefits adds costs to government agencies and causes challenges for the recipients who depend on these benefits.

The fraud-reducing technologies are part of a suite of tools Conduent offers that can assist agencies and beneficiaries nationwide in protecting government aid for nutrition assistance, unemployment insurance and other cash-aid programs.

“SNAP beneficiaries rely on benefits to help supplement their monthly food budget to feed their families. When these benefits are stolen from them through fraud, that can result in less food on a family’s dinner table and hungry homes,” said Michael Leach, SCDSS State Director. “Our agency is continually working with Conduent to deploy new strategies and safeguards to prevent our clients from becoming fraud victims.”

Last year, Conduent implemented an advanced interactive voice response (IVR) system technology for South Carolina’s EBT customer service center that automatically identifies suspicious phone call patterns, such as an unusually high number of calls from a single phone number. When threats are identified, the technology can prevent access to EBT account information in real time.

South Carolina has also made an account protection feature available to beneficiaries, allowing them to easily and quickly lock and unlock their benefits card using Conduent’s ConnectEBT mobile app and cardholder portal. This feature, which applies to both in-state and out-of-state purchases, provides cardholders more control and security in managing their accounts and helps prevent perpetrators from gaining access to their benefits. Other states including Iowa, Maryland, New York and Ohio have also implemented this ConnectEBT feature.

In addition, for South Carolina, Conduent implemented the ability for cardholders to receive and manage usage alerts for identifying suspicious transaction activity on their EBT accounts. This feature can help beneficiaries monitor, spot and report the suspicious activity in real-time.

SCDSS says it will never send clients a text message about locking a card and requiring a SNAP recipient to contact a 1-888 number and provide the client’s EBT card number to unlock the benefits. To report suspicious activity or SNAP fraud, the public is encouraged to make a report to the USDA Office of the Inspector General at 1-800-424-9121 or online here.

“We’re proud and excited to bring these enhanced benefit protection features to South Carolina as well as other states,” said Wade Fairey, General Manager, Payments and Child Support Solutions at Conduent. “We’re providing agencies with security tools and technologies that help ensure states can most effectively serve their EBT constituents. These features are designed to help states curb unauthorized access to accounts and ensure that funds go to the intended benefits recipients.”

About Conduent
Conduent delivers digital business solutions and services spanning the commercial, government and transportation spectrum – creating valuable outcomes for its clients and the millions of people who count on them. The Company leverages cloud computing, artificial intelligence, machine learning, automation and advanced analytics to deliver mission-critical solutions. Through a dedicated global team of approximately 59,000 associates, process expertise and advanced technologies, Conduent’s solutions and services digitally transform its clients’ operations to enhance customer experiences, improve performance, increase efficiencies and reduce costs. Conduent adds momentum to its clients’ missions in many ways including disbursing approximately $100 billion in government payments annually, enabling 2.3 billion customer service interactions annually, empowering millions of employees through HR services every year and processing nearly 13 million tolling transactions every day. Learn more at www.conduent.com.

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Trademarks
Conduent is a trademark of Conduent Incorporated in the United States and/or other countries. Other names may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240411423203/en/

Media Contact:

Neil Franz, Conduent, +1-240-687-0127, neil.franz@conduent.com

Investor Relations Contact:

Giles Goodburn, Conduent, +1-203-216-3546, ir@conduent.com

Source: Conduent Incorporated

FAQ

How is Conduent helping combat EBT fraud in South Carolina?

Conduent has implemented fraud-reducing technologies for the South Carolina Department of Social Services to enhance the security of the state's EBT program, specifically targeting fraud in programs like SNAP.

What technologies has Conduent implemented for South Carolina's EBT program?

Conduent has implemented an advanced IVR system and the ConnectEBT mobile app for South Carolina's EBT program to provide real-time monitoring, account protection, and usage alerts for beneficiaries.

Which other states have implemented Conduent's ConnectEBT feature?

States like Iowa, Maryland, New York, and Ohio have also implemented Conduent's ConnectEBT feature for their EBT programs to enhance security and provide beneficiaries with more control over their accounts.

How does Conduent's IVR system technology help prevent EBT fraud?

Conduent's IVR system technology automatically identifies suspicious phone call patterns, such as an unusually high number of calls from a single phone number, to prevent unauthorized access to EBT account information in real time.

What account protection feature does Conduent provide for EBT beneficiaries?

Conduent's ConnectEBT mobile app allows beneficiaries to easily and quickly lock and unlock their benefits card, providing more control and security in managing their accounts and preventing unauthorized access.