SNAP Fraud Has Doubled Since Last Year. Here’s Why.

Criminals are looting public safety net programs using digital tools, according to a new report released by LexisNexis Risk Solutions.

The report analyzed reported fraud in the Supplemental Nutrition Assistance Program and Integrated Eligibility Systems. Fraud in the SNAP program has doubled, the report said.

The 54-page report reveals that the cost and volume of SNAP fraud have risen sharply over the past year, driven by the accelerated shift to digital channels, increasingly sophisticated Electronic Benefits Transfer theft schemes, and complex multi-program eligibility systems.

The findings of this year's report are especially significant given the administrative and programmatic changes introduced to SNAP agencies across the country by House Resolution 1.

Lnrs 2025 Tcof for Snap Agencies and Ies Report by scott.mcclallen

According to the 2025 study, the average monthly rate of fraudulent SNAP applications and post-issuance cases has doubled since 2024. For every $1 in SNAP benefits lost to fraud, agencies now incur $4.14 in total costs, up from $3.93 a year ago.

"SNAP is a lifeline for millions of families, and these findings highlight how increasingly sophisticated criminals are targeting this critical benefit program," said Amanda D' Amico, Senior Director at LexisNexis Risk Solutions. "Digital channels and expanded eligibility systems improve access but also expand the attack surface. Agencies that leverage real-time data, identity verification, and digital authentication solutions to detect fraud and increase cross-program collaboration can turn the tide against fraud while ensuring timely benefits for those in need."

Digital Channels Driving Fraud Growth: Agencies reporting high volumes of online and mobile applications saw disproportionately higher fraud losses, with digital channels now accounting for nearly half of all fraud costs. Scammers are increasingly using stolen identities and unauthorized point-of-sale terminals to conduct EBT account takeovers, card skimming, and cloning.
Fraud Risks Rise with Broader IES Integration: The spread of IES across Human Services programs (SNAP, Medicaid, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Temporary Assistance for Needy Families (TANF), Low Income Home Energy Assistance Program (LIHEAP)) is creating more access points for fraudsters. Fraud costs rise to $4.18 per $1 lost in multi-program systems and as high as $4.55 where five or more programs are integrated.
Integration + Quality Data Can Reduce Fraud: Agencies that fully integrate systems, cross-share data, cross-train staff, and reassess identity on non-SNAP originating applications report lower fraud costs—$3.98 per $1 lost—and fewer errors.
Delays, Errors, and Turnover Undermine Integrity: Agencies overwhelmed by application volume, staffing shortages, outdated systems, and poor data quality are falling short of federal timeliness requirements. Nearly half report lower productivity and 74% report increased errors, eroding confidence in eligibility decisions.
Human Impact is Mounting: Delayed approvals can cause hunger, malnutrition, and financial stress for households in need, while compounding low morale and high turnover among staff.

"This year's findings paint a sobering picture of the escalating threats SNAP agencies face," said Haywood Talcove, CEO of LexisNexis Risk Solutions Government. "Fraudsters are exploiting digital channels and artificial intelligence, stealing identities, and leveraging sophisticated schemes to divert critical benefits. Without modernization, robust data sharing, and strong identity verification, fraud will continue to drain resources from the people who need them most. The good news is that agencies investing in advanced fraud detection are proving it's possible to protect integrity while simultaneously improving access to benefits."

The True Cost of Fraud™ Study for SNAP Agencies and Integrated Eligibility Systems surveyed 150 senior decision-makers across state and county agencies nationwide in June–July 2025. The study evaluates the cost, volume, and types of SNAP fraud, the operational resources agencies devote to prevention, and the impact of modernization and data quality on application timeliness, payment accuracy, and caseworker experience.

Criminals have targeted SNAP benefits in every state, according to a federal dashboard. Across 53 states, the federal government said that states approved over 691,000 stolen benefits claims with a total value of $322 million.

The US Department of Agriculture is stomping out SNAP fraud by switching five states to chipped EBT cards. In March, the USDA reminded every retailer to review program rules to prevent fraud.

Snap Retailer FraudNotification 031925 by scott.mcclallen

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