SNAP Benefits Fraud Alert – Millions of Americans Warned About Widespread Scam

Fraud has been on the rise across the United States, with the Supplemental Nutrition Assistance Program (SNAP) becoming a primary target. SNAP recipients, who are often some of the country’s most vulnerable individuals, are falling victim to scams that rob them of their essential benefits. These scams are occurring nationwide, with reports of stolen benefits surfacing from various states.

Ohio SNAP Fraud Case

One particularly alarming case comes from Ohio, where a SNAP recipient named Jason Nichols fell prey to a common scam. Nichols discovered that his Electronic Benefit Transfer (EBT) card had been cloned and used in stores far from his home.

The scammers managed to drain $291 worth of food stamps from his account by using the cloned card in Illinois. This incident highlights the widespread nature of SNAP fraud and the substantial losses incurred by those who rely on these benefits for their daily sustenance.

Vulnerable

SNAP benefits are distributed through EBT cards, which operate similarly to debit or credit cards. While this system simplifies benefit distribution, it also exposes recipients to a variety of scams, including cloning, phishing, and skimming.

Each month, SNAP recipients’ EBT cards are loaded with funds that can be used in participating stores nationwide. Unfortunately, this system also provides numerous opportunities for thieves to steal benefits before the rightful beneficiaries even realize what has happened.

Growing Threat

Officials in Ohio have recently raised the alarm about the sharp increase in fraud targeting SNAP recipients. The Ohio Department of Job and Family Services issued a statement in March warning that criminals are increasingly using skimming devices to steal EBT card information.

Skimming involves placing a device over a point-of-sale card reader to copy payment card information. According to a report from the FICO credit scoring agency, card skimming incidents increased by a staggering 368 percent from 2021 to 2022.

National Scope

The problem extends far beyond Ohio. Data from the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) shows that nearly 177,000 instances of fraud were reported in the first quarter of 2024 across various states. New York was the most affected state, with 34,306 reported cases of benefit fraud during this period. Other states, including Illinois, Maryland, and Texas, also saw high numbers of EBT scams, highlighting the widespread nature of this issue.

Law Enforcement Response

In some cases, law enforcement has successfully apprehended and prosecuted those responsible for SNAP fraud. Earlier this year, two individuals were charged with using a New York bodega as a base for over $20 million in EBT fraud.

Additionally, in Texas, six people were arrested in March 2024 for their involvement in food stamp fraud amounting to tens of thousands of dollars. These cases underscore the serious criminal activity surrounding SNAP benefits and the efforts by authorities to combat it.

Legislative Measures

Recognizing the severity of the issue, several legislative measures have been proposed to combat SNAP fraud. In New York, proposals include classifying SNAP fraud as a class D felony and conducting a comprehensive study to understand the prevalence and tactics of food stamp theft.

Brooklyn Representative Iwen Chu emphasized the critical nature of the problem, noting that SNAP fraud has victimized countless individuals and drained significant state resources. Chu advocates for the proposed study, stating that it is essential to identify how these benefits are being stolen and to develop effective countermeasures to protect low-income individuals who rely on SNAP for food and other necessities.

Protecting Yourself

To help SNAP recipients protect themselves from fraud, the Ohio Department of Job and Family Services offers several tips:

• Create a strong PIN: Choose a unique and difficult-to-guess PIN for your EBT card.
• Change your PIN regularly: Update your PIN monthly, preferably before each scheduled deposit.
• Keep your card information private: Never share your card number or PIN, and be aware that the Ohio Department of Job and Family Services will never ask for these details.
• Inspect card readers: Before using a point-of-sale card reader, check it carefully for any signs of skimming devices.
• Shield your PIN: When entering your PIN, cover the keypad with your hand or body to prevent others from seeing it.

By following these precautions, SNAP recipients can better protect themselves from the growing threat of fraud and ensure that their benefits are used as intended.

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