These 4 States Will Be the First to Pay Back Stolen SNAP funds

If you're in Maryland or Vermont, you may have a limited window to reclaim stolen food benefits.

One of the more upsetting trends that emerged in all the chaos of 2022 was a spike in food benefit theft. Thieves used a mix of tricks to steal millions of dollars in Supplemental Nutrition Assistance Program (SNAP) assistance -- money that was intended to help low-income families keep food on the table.

It isn't clear exactly how much money was stolen as the USDA doesn't have data on the number of incidents. However, in Massachusetts and Maryland alone -- two of the states that have released figures -- criminals made off with millions of dollars.

How states are helping victims of SNAP theft

The two main ways that criminals are stealing people's benefits are skimming and phishing. Skimming essentially involves copying card information when you swipe to pay or withdraw cash. It can happen with debit or credit cards as well. The difference is that your bank or card issuer will usually refund fraudulent transactions.

That's part of the reason that Congress passed a law at the end of last year to let states use federal funds to replace the stolen money. If you were robbed of your food benefits between Oct. 1, 2022, and Sept. 30, 2024, you could be entitled to reimbursement. So far, four states have submitted their plans -- and Maryland and Vermont are already implementing their payback schemes.

1. Maryland

Maryland was the first out of the gate. The state submitted a plan on Feb. 10, got it approved in less than two weeks, and began implementation on March 6.

• If your benefits were stolen between Oct. 1, 2022 and Feb. 28, 2023, you have until May 31 to file a claim. For money stolen after March 1, 2023, you'll have 45 days after you discover the stolen benefits to file. Visit the Maryland stolen benefits page for more information.

2. Vermont

Not far behind, Vermont launched its benefits recovery scheme on March 14. Victims in Vermont don't have a lot of time to report the stolen money.

• If you had benefits stolen between Oct. 1, 2022 and March 14, 2023, you have until April 12 to file a claim. For money stolen after March 14, you have 30 days after you discover the theft to file. Visit the Vermont stolen benefits page for more information.

3. Alabama

Alabama and Iowa both submitted plans on Feb. 24, but Alabama is due to start implementation slightly sooner. Alabama SNAP recipients who've had funds stolen should be able to apply for reimbursement from May 30. Pay attention to the Alabama human resources page for deadlines and information as it becomes available.

4. Iowa

Iowa's reimbursement plan was approved on March 22, but it will take a few months for implementation to begin. SNAP fraud victims can start applying to get their money back from June 15. Watch the Iowa SNAP website for more details about when and how to apply and other information as it becomes available.

What you need to know about reclaiming stolen food benefits

While each state will have different processes in place for you to reclaim funds, you'll likely need to provide documentation to show what was stolen. There is also a limit on how much you can claim. The law won't allow states to pay more than two months worth of benefits -- even if more money was stolen.

If your state doesn't have yet any information about reimbursement, talk to your local SNAP office and keep an eye on the USDA's stolen SNAP benefit page. It will list each plan as and when it gets approved. Be prepared to move quickly -- Vermont victims had less than a month from the date it launched its scheme to the deadline for making claims.

If you've been the victim of food benefit fraud, change your EBT PIN and password immediately. You'll also need to report the theft and get a new card as quickly as possible. More widely, try to use a PIN and password that are difficult to guess, as this makes it harder for thieves to steal your benefits.

Bottom line

SNAP benefits have become a lifeline for millions of American households. If they are stolen, it may mean a family has to go hungry, take on debt, or turn to help from charities or friends and family. It's great that some states have moved quickly to reimburse stolen funds -- though it is sad that they have to do so.