Criminals Want to Steal Your Food Benefits. Here's How to Stop Them

Take steps to stop thieves taking the money you need to feed your family.

If you rely on food benefits to feed your family, the idea that thieves are targeting that money is likely to be extremely upsetting. Unfortunately, millions of SNAP dollars have already been stolen from people's accounts in what appears to be a growing problem. The good news? Not only is the government ready to pay back stolen money, there are also ways you can protect yourself against theft.

SNAP, or the Supplemental Nutrition Assistance Program to give it its full name, is a lifeline for millions of American families. Payments are made to an electronic benefits transfer (EBT) card, which works in a similar way to a debit or credit card. However, unlike other cards that have fraud protection, until recently, if crooks stole from your EBT card, there wasn't a lot you could do to get it back.

How thieves are stealing SNAP benefits

One of the main ways criminals are stealing people's food benefits is through skimming or cloning cards. This involves taking someone's card information and then using it to make fraudulent transactions. For example, when you use your card to pay in a store, a skimming device might copy the card information. Thieves could then either use it to produce a cloned card or use the data to make payments.

EBT cards are particularly susceptible to skimming because they don't have the embedded chips that most banks and credit card issuers now use to give an extra level of protection. Senator Ron Wyden wrote to the USDA in March asking it to update its EBT cybersecurity measures. He said the organization hasn't updated them since 2010 and added, "These regulations were hardly cutting edge at the time."

Another way thieves are targeting EBT recipients is through messages or calls where they pose as officials and ask for confidential data. Known as phishing, it can happen in many contexts. For example you might receive an SMS or email from someone pretending to be your bank asking you to open an attachment that contains malware. Or they might instead ask you to give them personal information. In the context of SNAP benefits, people received fake messages asking them to call a number and share passwords or PINs in order to unlock their EBT card.

How to protect your EBT money

At the end of last year, the government passed a law to allow states to replace stolen SNAP benefits. But it isn't clear how that will work in each state or how long it will take. There are also limits on how much money you can get back. It's worth taking steps to protect your benefits. These include:

• Use a secure PIN: It's not easy to juggle lots of PINs and passwords, but try to avoid using codes that are easy to guess. Rather than 1234 or 1111, how about the first few digits of your childhood phone number or another memorable number?
• Be suspicious if someone calls asking for confidential info: SNAP officials will never ask for your PIN by phone or text. If you get a call or message that doesn't feel right, don't respond. Instead, call your SNAP office on an official number.
• Check your account regularly: You can check your balance online or even via an app, making it easy to monitor outgoings and spot any spending that's not yours.
• Look for signs of tampering at card machines: It isn't always easy to know if a machine's been messed with, but pay attention before you swipe. If the machine seems oversized or parts of the machine are covered up, don't use the machine.

If you suspect your card's been cloned or you notice unauthorized charges, change your PIN immediately. Contact your local SNAP office to report the problem and apply for a new card.

What to do if you've been the victim of EBT fraud

At the end of last year, Congress passed a law that allows states to replace benefits stolen between Oct. 1, 2022 and Sept. 30, 2024. Be aware that states are only allowed to replace a maximum of two months' worth of SNAP benefits. So if thieves stole more than this, you will only be able to get some of the money back.

Each state needs to come up with a plan on how it will cover stolen funds, including how people can apply and what documents they'll need to provide. So far, only a handful of states have announced their plans. If you've had your food benefits stolen, pay attention to any local announcements so that you can make a claim.

Bottom line

It is shocking to think that criminals are targeting funds intended to help low-income families pay for food. The harder you can make it for thieves to take your money, the better. Be alert, especially if people claiming to be officials call you out of the blue. And if you have already been a victim of a food benefit theft, see what your state is doing about refunding that money.