Keystone Today

The Pennsylvania Treasury Department will be more secure, according to Treasurer Stacy Garrity, as the state’s General Assembly approved the 2022-23 state budget that includes a fiscal code amendment to help spot and stop fraudulent use of taxpayer dollars.

Act 54 of 2022 authorizes the Treasury Department to require the implementation of electronic payment security protocols called Account Verification System (AVS), according to a July 12 press release from Garrity’s office. It is considered a “significant step forward” in detecting and preventing fraud in public fund usage.

“This is a powerful new tool in the never-ending fight against identity thieves and other criminals,” Garrity said in the release. “States have been targeted by fraudsters throughout the pandemic. The Pennsylvania Treasury Department works around the clock to ensure that taxpayer money is spent appropriately and doesn’t fall into the hands of criminals. I want to thank the General Assembly and the governor for including this language in the Fiscal Code to improve payment security statewide.”

Garrity thanked those who worked to include the language in the Fiscal Code including Senate President Pro Tempore, Jake Corman, House Speaker, Brian Cutler, Senate Majority Leader, Kim Ward, House Majority Leader, Kerry Benninghoff, Senate Appropriations Chairman, Pat Browne and House Appropriations Chairman, Stan Saylor, the release stated.

“I spoke to Senator Corman and Representative Saylor often over the past few weeks,” Garrity said. “I also reached out to Governor Wolf directly, and I thank him for his support of this important initiative. Criminals trying to steal money from hardworking taxpayers never stop – and neither will we. This is a great step forward to increase our already robust security measures.”

Corman said taxpayers deserve the peace of mind to know that money is protected against fraud and abuse.

“This new tool will provide a critical layer of protection to support our shared goal of safeguarding taxpayer dollars,” Corman said. “I appreciate Treasurer Garrity’s leadership in advocating for this new system to prevent financial crimes against our Commonwealth.”

Saylor praised Garrity, saying she appreciates her leadership.

“Unfortunately, the number of criminals seeking to defraud taxpayers has been on the rise throughout the country,” Saylor said. “As leaders, our job is to protect taxpayer dollars and ensure that they are used for appropriate purposes. Treasurer Garrity gets that.”

The AVS uses bank account information and other identity data to confirm a transaction is a legitimate payment, according to the release. The Treasury will develop a list of electronic payment security vendors that are “qualified, experienced, and capable of providing such services”.

Within 18 months of the law being in effect, all boards, commissions, and agencies that the Treasury makes payments will choose a vendor to use for its payments, the release stated. The list of approved vendors will be updated by the Treasury every two years.

Through AVS, payments are processed almost immediately, the release stated. If issues are identified, the AVS responds with coded indicators to stop the payment or find more information. This leads to the agency that originated the payment determining if it is fraudulent or needs more information or a correction.

The following state agencies have either implemented or will implement AVS: The Department of Revenue, the Office of Administration, the Liquor Control Board, and the Pennsylvania Housing Finance Agency, according to the release.

The U.S. Department of the Treasury uses AVS for accounts payable, as well, the release stated.