The U.S. Department of the Treasury and the Federal Reserve Banks are pushing those who receive regular checks from the government to have that money deposited directly as a way to help avoid identity theft according to an article in the March 2007 AARP Bulletin.

The article explains that the Treasure Department found about 57,000 signatures were forged on government checks last year; there were almost no problems with direct deposit during the same period.

In spite of evidence to the contrary, apparently about 40% of the folks who receive regular government checks are under the impression that paper checks are safer. Yet direct deposit almost entirely eliminates stolen checks and the subsequent risk of identity theft, and missed payments.

You can get more information at GoDirect.org.

Labels: direct deposit, online banking, seniors