If Congress fails to act, benefit card fraud victims will no longer receive refunds, and most states will not cover losses
Millions of low-income families in the United States risk losing their stolen SNAP benefit refunds if Congress fails to act by September 30. Since the end of 2022, a provision allowed states to use federal funds to reimburse victims of the fraud known as “skimming,” which involves cloning EBT cards. However, that coverage will expire at the end of the month and most states do not plan to continue reimbursements with their own funds.
CA Rep. Dutch Ruppersberger, D-Maryland, has led a bipartisan campaign to extend these protections, but notes that there is little hope that Congress will pass a bill in time, as they are more focused on avoiding a government shutdown before Oct. 1.
Losses from scams continue to rise
The U.S. Department of Agriculture (USDA) has reported that more than 125,000 households have been affected, with a total of $61.5 million in stolen benefits between 2023 and early 2024. However, Ruppersberger cautioned that these figures are likely underestimated. Despite legislative efforts, fraud remains a major problem, and the Biden administration recently criticized a government funding proposal that does not include measures to safeguard affected families.
EBT cards remain vulnerable to theft
EBT SNAP card fraud is facilitated by the lack of security microchips, which leaves the cards easily vulnerable to devices that capture information and create clones. While commercial debit cards have security measures such as contactless payments and embedded chips, EBT cards have no such protections, and are not covered by the same federal safeguards that would allow stolen money to be replaced.
So far, only two states, California and Oklahoma, have announced plans to implement microchip cards, with target dates of 2025. California has repaid more than $120 million in stolen benefits, one of only a handful of states to do so. Oklahoma, meanwhile, has had to replace more than $1.4 million for more than 2,600 affected households. These efforts show that updated technology could be key to reducing benefit theft.
The impact on vulnerable families
Vicky Negus of the Massachusetts Law Reform Institute warns that even a brief interruption in SNAP benefits can be devastating for many families, affecting their ability to pay rent or utility bills. If Congress does not extend federal reimbursements, most states will not cover the cost of stolen benefits, leaving millions of families without support.
Cindy Long, USDA deputy assistant secretary, has stated that SNAP is a “vital safety net” and that the agency is working to prevent further fraud, while urging Congress to maintain funding for victims of these scams. However, passage of legislative action is overshadowed by other priorities on the Congressional agenda, leaving thousands of households uncertain whether or not they will receive their stolen benefits.