Benefit card fraud is leaving thousands without access to essential funds, with an alarming increase in reported cases in several states
Fraud related to the Supplemental Nutrition Assistance Program (SNAP) has reached troubling levels across the United States, especially affecting the most vulnerable people. Beneficiaries in several states are reporting significant losses of their benefits due to scams that center on electronic benefit cards (EBT), which are used to administer SNAP in a manner similar to a debit card.
One of the most recent and representative cases occurred in Ohio, where Jason Nichols, a SNAP recipient, discovered that his EBT card had been cloned and used at stores in Illinois, resulting in a loss of $291 in food stamps. Nichols told WHIOTV, “The scammers spent my benefits at stores I don’t even know.” Card cloning, phishing and data theft are just some of the techniques these criminals are employing to empty beneficiaries’ accounts before they can use their funds.
The Ohio Department of Job and Family Services has issued warnings to beneficiaries about the increase in these scams, noting that criminals are using devices to copy card information from point-of-sale readers. According to a report by credit rating agency FICO, card data cloning increased 368% between 2021 and 2022.
However, the problem is not limited to Ohio. Data from the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) reveals that nearly 177,000 cases of fraud were reported nationwide in the first quarter of 2024 alone. New York is the most affected state, with 34,306 cases reported in this period. Other states such as Illinois, Maryland and Texas have also experienced a large number of EBT card scams.
Despite the magnitude of the problem, some authorities have been successful in catching and prosecuting the perpetrators of these frauds. In one high-profile case in early 2024, two individuals were charged with operating a $20 million-plus fraud from a warehouse in New York. Similarly, in March, six individuals were arrested in Texas for their involvement in a food stamp fraud scheme valued at tens of thousands of dollars.
In response to this crisis, New York has proposed several legislative measures to combat SNAP fraud. These include making fraud a Class D felony and conducting a study to understand the prevalence of SNAP theft in the state. Brooklyn Rep. Iwen Chu called fraud “a critical problem” that has “victimized countless individuals and families,” while also draining “substantial state resources.” Chu also stressed the importance of the proposed study to identify the root causes of fraud and develop effective countermeasures. “The state must act immediately to identify how these benefits are being stolen,” Chu said, stressing that this is the essential first step in protecting low-income New Yorkers who rely on SNAP for food and other basic needs.
For those recipients looking to protect themselves from fraud, the Ohio Department of Jobs and Family Services has issued several recommendations:
- Create a unique, hard-to-guess PIN for the EBT card.
- Change the PIN monthly, before each scheduled deposit.
- Never share the card number or PIN with anyone, as law enforcement will never ask for this information.
- Carefully inspect card readers at points of sale before use to detect possible cloning devices.
- Cover the keypad with your hand or body when entering the PIN to prevent others from seeing it.
Meanwhile, authorities continue their efforts to identify and prosecute fraudsters, while working on new measures to protect SNAP beneficiaries from this growing problem.