SNAP Benefits Scam – Alert Issued to Millions of Americans

Fraud is increasingly becoming a widespread issue across the United States, and one of the hardest-hit programs is the Supplemental Nutrition Assistance Program (SNAP). Vulnerable recipients of SNAP benefits in various states are falling victim to scams, losing hundreds of dollars in critical food assistance. As these scams continue to rise, it’s more important than ever for beneficiaries to be aware of the risks and take steps to protect themselves.

SNAP Fraud

SNAP benefits are distributed through Electronic Benefit Transfer (EBT) cards, which work like debit cards, making them susceptible to similar types of fraud, including cloning, phishing, and skimming. Unfortunately, the convenience of EBT cards also opens up countless opportunities for thieves to exploit them. Each month, these cards are loaded with funds intended to help individuals and families buy groceries, but increasingly, those funds are being stolen before recipients even realize something is wrong.

A recent case in Ohio highlights the seriousness of the issue. Jason Nichols, a SNAP recipient, discovered that his EBT card had been cloned and used in another state. He lost $291 worth of food stamps when scammers used his benefits in Illinois. This case is far from isolated, as similar reports have surfaced across the country, with many victims losing significant amounts of their benefits.

Alarming Statistics

Ohio has seen a sharp increase in SNAP fraud, prompting officials to issue warnings to beneficiaries. The Ohio Department of Job and Family Services (ODJFS) reported that criminals have increasingly used skimming devices to steal account numbers from EBT cards. These devices are placed over point-of-sale card readers and can copy payment card information without the cardholder’s knowledge. According to a report from the FICO credit scoring agency, card skimming incidents rose by a staggering 368 percent from 2021 to 2022.

But the problem isn’t limited to Ohio. Data from the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) revealed nearly 177,000 instances of SNAP fraud in the first quarter of 2024 alone, with New York being the most affected state. New York reported 34,306 cases of benefit fraud during this period, followed by Illinois, Maryland, and Texas, which also saw high numbers of EBT scams.

In some cases, authorities have successfully caught and prosecuted those responsible. For example, earlier this year, two individuals were charged with running a $20 million EBT fraud scheme out of a New York bodega. Similarly, in March 2024, six people were arrested in Texas for food stamp fraud involving tens of thousands of dollars.

Combat SNAP Fraud

In response to the growing crisis, several legislative measures have been proposed to address SNAP fraud, particularly in New York. These proposals include classifying SNAP fraud as a class D felony and conducting a comprehensive study to know the extent and methods of food stamp theft in the state. Brooklyn Representative Iwen Chu has been vocal about the importance of these measures, calling SNAP fraud a “critical issue” that has victimized countless individuals and drained substantial state resources.

Chu stressed the importance of the proposed study, stating, “This is why the study on SNAP fraud is so important; it will help us uncover the root causes, identify common tactics used by scammers, and guide us in crafting effective countermeasures. The state must act immediately to identify how these benefits are being stolen. This is the essential first step to protect low-income New Yorkers who rely on this assistance for food and other necessities.”

Protecting Yourself from Fraud

For SNAP recipients, taking proactive steps to protect their benefits is crucial. The Ohio Department of Job and Family Services offers several recommendations to help prevent fraud:

• Create a strong PIN: Choose a unique and hard-to-guess PIN for your EBT card.
• Change your PIN regularly: Update your PIN monthly, ideally before each scheduled deposit.
• Keep your information private: Never share your card number or PIN, and remember that government agencies will never ask for these numbers.
• Check card readers: Carefully inspect point-of-sale card readers for any suspicious devices before using them.
• Cover your PIN: When entering your PIN, shield the keypad with your body or hand to prevent others from seeing it.

SNAP fraud is a growing problem that threatens the food security of some of the nation’s most vulnerable citizens. As fraudsters continue to target these benefits, it’s essential for recipients to stay vigilant and take steps to safeguard their assistance. With the ongoing efforts from authorities and proposed legislative changes, there is hope that these scams will be curtailed. Until then, SNAP beneficiaries must remain cautious and proactive in protecting their benefits.

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