WE’RE HERE TO FORECLOSE, YOUR DIRECT DEPOSIT DIDN’T GO

WE’RE HERE TO FORECLOSE, YOUR DIRECT DEPOSIT DIDN’T GO ...

January 10, 2020 By Joseph P. Farrell

C.V. found this one and passed it along, and a big thank you for doing so, for I suspect we might be looking at the next scam. But more of that in a moment when we get to today's high octane speculation.

The story concerns a shut-down of the US Fed's direct deposit system late last year:

Direct Deposits Across America Hang After Fed's ACH Payment System Suffers Major Disruption

The headlines say it all: there was another glitch ex machina in the Federal Reserve's Automated Clearing House system:

pdate: With reports of direct deposits failing to clear still ongoing, Bloomberg reported that the Federal Reserve was investigating "the second significant disruption in 2019 of a payments service administered by the U.S. central bank."

As we first reported earlier (see below) key transactions - most notably funding via direct deposits - were delayed after ACH - which stands for the Fed's Automated Clearinghouse System - experienced delays, but it is now up and running.

"The FedACH service, which processes transactions for commercial banks, is currently operating normally after experiencing delays in processing yesterday afternoon and early this morning," Jean Tate, a spokesman for the Atlanta Fed which hosts the central bank’s Retail Payments Office processing ACH transactions, said in an e-mailed statement, despite reports that some banks bank clients still had not received their money.

"Some customers experienced delays in receiving confirmations of yesterday’s transactions. Federal Reserve technical staff continue to investigate the root cause of the issue."

ACH is a national system that processes batches of electronic funds transfers such as payroll, social security benefits, tax refunds, corporate payments to vendors and utility payments, according to the Fed’s website. The commercial service handled 58.5 million transactions a day on average in 2018 with an average value of $1,760.

Gee... payrolls, social security checks, tax refunds, and corporate payments... fancy that. But hey, I still think cyber systems are inherently safe, and that we all need to move to a global digital currency and payment systems as soon as possible, because there's absolutely no room in such systems for any sort of fraud.

NOT!

So, yes, you can color me skeptical here, because this story has all sorts of high octane speculative skullduggery and fraud written all over it. During that period of the outage, just imagine what one could do with that money and all the transactions one could commit, before allowing the transaction to go through. It's that state of limbo called the float which banksters have been using for decades to make money by using transaction money before it clears.

Let's extend that high octane speculation by coupling targeted algorithms into the mix: Let's say, for a moment, that for whatever reason, you've run afoul of the deep state for whatever reason. Say they've been monitoring your taco purchases, and concluded you're contributing far too much to "climate change" because their metrics have calculated that you're far too flatulent as a result of your taco habit. Your carbon footprint and methane emissions are far too big, and you need to be "taught a lesson." So they target your direct deposit mortgage payments for six months, while you continue blithely on, consuming tacos, bean dip, and so on, blissfully unaware that your direct deposit mortgage payments are not reaching your mortgage institution. Meanwhile, they make more money using your payments on the float, until your wife or husband notices, too late, that the mortgage statements are not reflecting your direct deposit payments, even though your bank statements are showing that your account has been deducted for the amounts. But too late! The gorillas arrive, and you and your family are evicted,  your property foreclosed, and left to find housing and sort out the mess.

Of course, all of this could have been avoided with regular checks and good old fashioned mail, but that's another topic for another day. Suffice it to say it's much more difficult to place real humans in real post offices pulling real envelopes from real people, physically opening them, and stealing checks.  It can be done, of course, but it's much more cost intensive and much less effective. Digital crime is much more targetable, and much more efficient.

To put it country simple: I don't put anything past these people; they've squandered any trust they once might have had.

See you on the flip side...