Issue Briefs

Federal employees have reported unauthorized health care FSAs and dependent care enrollments that led to unauthorized deductions from pay. Image: Teacher Photo/Shutterstock.com

Following is an alert posted by the inspector general’s office at OPM regarding the FSAFEDS flexible spending account program following instances of fraud targeting what is believed to be several hundred federal employees.


The U.S. Office of Personnel Management (OPM) Office of the Inspector General (OIG) is aware the Federal Flexible Spending Account Program (FSAFEDS) has experienced incidences of fraud when some Federal employees had unauthorized health care flexible spending account (HCFSA) and dependent care flexible spending account (DCFSA) enrollments that led to unauthorized deductions from employees’ pay.

Federal employees have experienced FSAFEDS enrollments and unauthorized deductions. The OPM OIG urges Federal employees to review and continually monitor their Earnings and Leave Statements for potential fraudulent activity.

OPM and FSAFEDS are temporarily pausing enrollment in the FSAFEDS Program.

FSAFEDS members can still submit claims for reimbursement while enrollment is paused.

Report any suspicious activity or unauthorized deductions on flexible spending accounts to FSAFEDS at 877-FSAFEDS (877-372-3337) or to the OPM OIG via the OPM OIG Hotline (1-877-499-7295).

At this time, the FSAFEDS program and OPM do not have evidence that systems related to the FSAFEDS program have been compromised in any way. However, out of an abundance of caution, OPM has directed the temporary disabling of the enrollment functionality of the FSAFEDS platform. This applies to Qualifying Life Events (QLEs) as well. FSAFEDS will allow retroactive adjustments to elections due to a QLE (for example, the birth of a child) once the enrollment functionality resumes. OPM is taking this step to prevent further fraud.

FSAFEDS members can still submit claims for reimbursement while enrollment is paused.

If You Believe You are the Victim of Unauthorized Flexible Spending Account Enrollments

If you believe you are the victim of unauthorized Flexible Spending Account enrollments, we encourage you to immediately report any unauthorized deductions to a flexible spending account or other suspicious activity on your FSAFEDS account to FSAFEDS at 877-FSAFEDS (877-372-3337); 866-353-8058 (TTY); or + 1 650 577-5294 (International).

Potential fraud can also be reported to the OPM OIG by contacting the OPM OIG Hotline or by calling the OPM OIG Hotline (1-877-499-7295).

The OPM OIG, OPM, and FSAFEDS are working together to address this situation. Your vigilance is crucial in helping us address this issue promptly and effectively. OPM and FSAFEDS will continue to communicate relevant updates int eh coming days and weeks.

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