Tipsheet

These Four States Lead the Nation in SNAP Fraud Reports

Scott McClallen
Scott McClallen  |  August 14, 2025 2:30 PM

The United States Department of Agriculture and other agencies are fighting criminals who steal from a food fund for the hungry. 

The federal agency has replaced $322 million in benefits across 53 states from fiscal year 2023 to 2025. The agency feeds about 42 million people through the Supplemental Nutrition Assistance Program. Nearly 679,000 households have reported stolen benefits across 1.9 million transactions. 

These states submitted the most food stamp fraud claims, according to a dashboard. 

  • New York: 151,738 
  • California: 85,978 
  • Texas: 57,187 
  • Illinois: 41,565

The criminals steal funds by installing fake card readers in public places, phishing scams, and more. Once someone else swipes their card in the fake card reader, the criminals can copy the card information and sell it on the dark web. 

In May, the federal government busted a $66 million SNAP fraud ring in New York. Criminals bribed a federal agent to give inside access to steal welfare from poor people. 

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Five states are upgrading SNAP cards to reduce food stamp fraud. Alabama, California, Oklahoma, New Jersey, and Maryland have or are switching to chipped cards, which are more secure. 

Retailers in bordering states must accept out-of-state EBT chip cards, the federal agency says. 

The USDA, Secret Service, and other agencies have been busting EBT fraud rings nationwide. 

The account Desiree posted on X: “New York: Secret Service + NYPD just pulled off Operation Flagship, busting a bodega that was skimming EBT funds and debit PINs. Clerk denied taking EBT but agents tested it, it worked, then they yanked the illegal reader and 14 other skimmers tied to organized fraud rings. This is how you protect families, not thieves.” 

USDA Secretary Brooke Rollins posted: "Let me be clear. If you are abusing the system and committing SNAP fraud – just know that we will find you. We will arrest you. We will convict you. No warnings. No second chances."

In early August, law enforcement visited and inspected more than 542 businesses in metro-Atlanta and Columbus. Law enforcement removed 41 illegal skimmers from  from ATMs, gas pumps and point-of-sale terminals. The action saved as much  an as $43.7 million, the agency said. 

In July, The Secret Service inspected businesses in Georgia.