The Office of Personnel Management is working to address a spike in fraudulent activity on hundreds of accounts in a flexible spending account (FSA) program for federal employees.
Several hundred federal employees currently enrolled in FSAFEDS have experienced recent fraudulent activity on their accounts. Scammers have used the employees’ personal information to either create new, fraudulent FSAs, or otherwise make fraudulent reimbursement claims on existing FSAs.
HealthEquity, the vendor that administers FSAFEDS, previously notified OPM of the recent rise in fraudulent activity.
“OPM is working with the vendor to secure impacted accounts, compensate impacted individuals and implement additional anti-fraud controls,” an OPM spokesperson said in an email statement.