Five states are trying to minimize fraud in the Supplemental Nutrition Assistance Program, which feeds about 40 million people nationwide.
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.
Five states: Alabama, California, Maryland, New Jersey, and Oklahoma, are switching to chipped cards, according to the U.S. Department of Agriculture.
Criminals pilfer benefits meant for hungry families.
The state of California has received over 80,000 complaints for stolen benefits from the Supplemental Nutrition Assistance Program from fiscal year 2023-2025, according to a dashboard managed by the United States Department of Agriculture.
More than 4.4 Californians have been issued a chipped Electronic Benefit Transfer card as of April 29, according to California’s health department. California received 85,978 reports of stolen benefits - nearly $40 million worth – and paid 67,681 of them, or about $28 million.
Four states got scammed the most, according to the dashboard.
- New York: 151,738 reported stolen benefits
- California: 85,978 reported stolen benefits
- Texas: 57,187 reported stolen benefits
- Illinois: 41,565 reported stolen benefits
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.
Last week, an illegal immigrant pleaded guilty to stealing half-a-million dollars of SNAP benefits from California.
In some cases, states have caught employees stealing from the food fund for poor people. In January, seven Texas state employees were fired for allegedly stealing from the food fund.
In August, Michigan state employees have also been accused of stealing benefits meant for the poor.
In response to fraud in the SNAP program, the federal government plans to shift a substantial portion of the SNAP cost onto states.
In 2024, the national payment error rate for fiscal year 2024 is 10.93%.
This metric measures how accurately states determine eligibility and payment amounts. The USDA will require a corrective action plan for states with error rates at or above the 6% threshold.
About 44 states must submit and execute corrective action plans for fiscal year 2024. Further, states with continually high error rates – above the national average two consecutive years – are held financially responsible. Five states are in a multiple year liability status and will be assessed a fiscal sanction.
“Since the start of the Trump Administration, USDA’s Food and Nutrition Service has been aggressively working to help states lower their error rates, and we expect all states to step up their accountability and integrity measures,” FNS Administrator James C. Miller said in a statement. “FNS is fully committed to providing states the tools, expertise, and support they need to deliver SNAP benefits accurately, on time, and only to those who are lawfully eligible.”
FNS administers 16 nutrition assistance programs designed to combat hunger and promote healthy outcomes for children and vulnerable families across America.
Starting next year, the Trump administration will ban the residents of 12 states from using SNAP benefits to buy soda and junk food.