Oklahoma’s use of card readers to freeze, seize funds comes under fire

Police in Oklahoma are using scanners that can identify phony credit cards, but critics warn the devices could also allow cops to empty the bank accounts of law-abiding citizens with one swipe.

(FOX)- Authorities in the state are using the new devices during traffic stops to freeze and seize money loaded onto prepaid debit cards by alleged drug traffickers, with the potential to net up to $8,000 per portable scanner. Supporters of the program, which has only been in the field for about six weeks, say it’s an important tool for law enforcement agencies to interrupt the flow of illegal drugs into Oklahoma.

Critics, however, are blasting the machines as a disturbing extension of civil forfeiture laws, with the potential for abuse by police and prosecutors. Opponents say such devices are an infringement on Fourth Amendment prohibitions of unreasonable search and seizure — and that police departments are in turn stuffing their wallets with the cash from innocent civilians.

“We believe it’s blatantly unconstitutional,” Nick Sibillia, of the Institute for Justice, told FoxNews.com. “The Fourth Amendment is unfortunately in tatters in this day and age.”

The Oklahoma Department of Public Safety signed a contract with Texas-based ERAD Group Inc., to use the devices, which work on “open loop” prepaid debit cards, like those provided by American Express and Visa. But “debit cards attached to a valid checking account or valid credit cards cannot be processed” by ERAD, which stands for Electronic Recovery and Access to Data.

The company that manufactures the devices is also promised 7.7 percent of all money forfeited using the machines, according to one contract obtained by Oklahoma Watch.

“It’s just absolutely appalling that a private company can profit from this forfeited property,” said Sibillia.

The card readers, which are said to be used in at least 25 other states, have reignited debate over civil asset forfeiture — a legal tool used by police and prosecutors across the country to take millions of dollars in cash, cars, homes and more every year.

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