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Haploos Virtual Card

First in History

On 27 May 2022, the Department of Housing and Urban Development (HUD), the Government Accountability Office (GAO) and the Department of the Treasury came to an agreement that Haploos Virtual Card rebates will be considered “new revenue” and any rebate captured as a result of using Haploos Virtual Card to deliver payments will be categorized as UNRESTRICTED funds. 

UNRESTRICTED FUNDS

Haploos’ Virtual Card rebates are “new revenue” for PHAs and therefor, funds captured by PHAs while making HAP payments using Haploos’ VC are categorized as UNRESTRICTED funds.

PHAs may use the unrestricted funds in furtherance of their mission. 

NO RED TAPE

Haploos Virtual card is a new service to the government. No specific regulations or restrictions exists. PHAs and HUD are free to use Haploos Virtual Card and keep any rebates as unrestricted funds. 

COMPLIANT AND APPROPRIATE

Haploos Virtual Card is in compliance with Treasury regulations and is appropriate for use by PHAs making HAP payments.

Fighting Fraud

Passive Fraud

Active Fraud

Fighting Fraud

Passive Fraud

Active Fraud

What is Passive Fraud?

Legal Gray Area

No active steps are taken to defraud the government. This makes recapturing payments extremely difficult for PHAs and HUD. No strong legal options.

Ghost Riders

A PHA is paying rent for a voucher holder that is not actually receiving housing. For example the voucher holder moved out, passed away, or never moved in.

Potentially Massive

HUD estimated passive and active fraud could be as high as 7-10% in 2019.

Mostly Landlords

Passive fraud is most commonly occurring on the landlord side.

Fixing Passive Fraud

  • Landlord certifies each payment via text message or email.
  • Voucher holder has option to verify their housing status via text or email.
  • Use card network to hold payment in transit until certified
  • Level of validation required set by PHA – Do both need to certify?
  • Option to gather outside data to independently verify.

What is Active Fraud?

Easier to Prosecute

Active steps are taken to defraud the government, making it easier to prosecute when found.

What qualifies?

Fake vendors, fake landlords and unqualified voucher holders are all examples of active fraud.

Hard to Find

Active Fraud is difficult to find, but it is everywhere. Haploos VirtualCard is designed to hunt and kill active fraud.

Fixing Active Fraud

  • Use Artificial Intelligence to identify key red flags
  • Verify landlord & voucher holder
  • Verify vendor & service recipient
  • Use multiple independent data sources, such as, card network, cell phone, gov records

The Haploos Difference

Haploos is the payment. Everyone else is on the outside looking in, we are the inside.

  • We are on the inside looking out. We are the payment.
  • We validate prior to sending.
  • Other services are on the outside looking in.
  • Others try to understand what happened using historical date and educated guesswork.