How To Protect Yourself From SNAP Food Stamp Scams – Forbes Advisor

At a time when food prices have reached alarming highs, criminals are stealing SNAP food stamp benefits from the households that need them the most.

The United States Department of Agriculture (USDA), which oversees SNAP benefits, issued two warnings in October about food stamp scams. Some states are reporting hundreds of thousands of dollars in stolen benefits.

Experts believe the rise in food stamp benefits fraud is the result of thieves taking advantage of the influx of SNAP recipients during the pandemic. According to research from the nonpartisan Center On Budget And Policy Priorities (CBPP), 41 million people participated in the SNAP program in February 2022, compared to an average of 37 million people a month pre-pandemic.

Many low-income families rely on these benefits to purchase groceries; In some cases, it’s impossible to recover stolen food stamps. This could put families who rely on these funds at increased risk of hunger or malnutrition.

SNAP benefits are commonly disbursed onto electronic benefits transfer (EBT) cards. Though this option makes it convenient for recipients to access their funds, it’s also made them vulnerable to fraud.

Common SNAP Benefit Scams

According to the USDA, there are several reports of card skimming and phishing scams making the rounds among SNAP recipients. In Maryland, for example, more than $178,000 in SNAP and cash assistance benefits was reported stolen in August—more than triple the amount reported stolen in the month prior.

In October, the USDA released reports about two types of SNAP benefits scams.

SNAP EBT Card Skimming Scam

Card skimming occurs when criminals install devices on card terminals to capture sensitive information. According to the FBI, more than $1 billion is stolen via card skimming each year. The USDA warns that criminals are now using this tactic to steal SNAP benefits from recipients.

Card skimming is especially dangerous because it’s difficult for the average person to notice. Skimmers steal card and PIN information by installing hidden cameras, keypad overlays and card data retrievers in the point-of-sale (POS) terminal where you swipe or insert your card, according to the FBI. These modifications can record your PIN as you type it, as well as steal the card information while it’s inserted into the terminal.

ATM and POS skimming work in similar ways. Here, the FBI details how skimming modifications can steal someone’s card information as well as their PIN. Source: FBI

Read more: How To Spot A Credit Card Skimmer

Since many of these modifications are small or fit directly over the terminal’s actual features, it can be difficult to notice that a machine is altered for skimming. The FBI offers the following tips to avoid becoming a victim of card skimming:

• Inspect a payment terminal before use. Don’t use your card if there’s anything loose, crooked, damaged, or scratched on the terminal.
• Pull at the edges of a keypad before entering your PIN to check if there’s a keypad overlay.
• Cover the keypad with your other hand while entering your PIN to prevent any hidden cameras from recording your entry.

SNAP Phishing Scams

Phishing is a common form of cybercrime that involves criminals sending fraudulent messages that look like they’re coming from a reputable source. The USDA says criminals are posing as SNAP case workers to try to obtain recipients’ EBT card information.

Phishing text messages targeting SNAP recipients might say they were chosen to receive food stamps, according to a fraud alert from the South Carolina Department of Social Services. They might also say the EBT account is blocked. The text message includes a link or a phone number to call for recipients to “claim” their benefits.

A post in a Reddit forum dedicated to food stamps information warns of a text message scam targeting SNAP beneficiaries. 

Once the target responds or clicks a link, the criminals then ask the recipients for personal information, and may even request their EBT card number and PIN.

With this information, scammers can then steal benefits directly from the victim, either by redeeming them while shopping or withdrawing them, sometimes even in other states. One victim in Maryland detailed how over $1,000 of her benefits were spent in Tampa, Florida—a city and state she has never been to.

The USDA advises SNAP beneficiaries to check their EBT accounts regularly for any unauthorized charges; if you find any, change your PIN immediately to prevent any new purchases from being made.

3 Steps to Take if You Think You’re a Victim of SNAP Theft

Realizing you’ve been the victim of SNAP benefits theft can be a crushing experience to face. Not only can replacing your benefits card take weeks, but there’s no guarantee your state will reimburse the benefits stolen from you.

If you believe you’ve been a victim of food stamps theft, follow these steps:

1. Contact your state SNAP office immediately. If you’re unable to change your PIN, cancel your EBT card and request a new one immediately. You can do this by contacting your state’s SNAP office; some states even allow beneficiaries to cancel cards and request new ones online.

2. Look up your state’s refund policy. Since SNAP benefits are granted from federal funds, most states don’t reimburse them if they’re stolen. There’s no guaranteed protection for theft under federal law either, according to the Consumer Financial Protection Bureau.

If you live in a state that covers stolen benefits, you’ll need to follow its directions for reporting aid theft.

California, for example, has an extensive process for beneficiaries to follow if their benefits are stolen, including reporting the card stolen to the EBT customer service helpline, filing a police report and filling out a theft report. One Reddit user claimed it took 28 days for their stolen benefits to be reimbursed in California.

With the rise of SNAP theft, more states are pushing the federal government to reimburse stolen benefits. Rep. Ayanna Pressley (D-MA) has called on the USDA to reimburse victims and shore up technology after recipients in Massachusetts had $1 million in SNAP benefits stolen over just two months.

3. Change your PIN often. Many reports of SNAP theft state benefits were stolen on the day they were issued. Creating a schedule to change your PIN each month before your issuance date could prevent thieves who may have stolen your PIN from accessing your latest disbursement. To change your PIN, contact your state’s SNAP office.

Read more: What You Need To Know About SNAP Benefits Increasing Oct. 1