Since the COVID-19 pandemic began, there’s been a rapid rise in the theft of government benefits, including the Supplemental Nutrition Assistance Program (SNAP). This has prompted federal lawmakers to sound the alarm and protect vulnerable populations such as older adults.

A federal program managed by states, SNAP is a government lifeline for over 5 million older adults who need extra money buying food on a limited income.¹ But lawmakers such as U.S. Sen. Ron Wyden (D-Ore.) point out that the United States Department of Agriculture has yet to update security features on the Electronic Benefits Transfer (EBT) cards that SNAP recipients use to pay for groceries. These cards are preloaded with SNAP benefits.

Why is it easier for scammers to steal from EBT cards?

Many people who use credit or debit cards to pay for their food no longer have to swipe their cards thanks to a special chip on the front that lets them tap a machine at checkout to pay. The chip technology adds an extra layer of security against people who try to hack into their cards. However, EBT cards do not have chips, and card swipes leave older adults vulnerable to skimming, where a hacker can drain your benefits after pulling information such as a PIN number or card number from the machine you swiped. Scammers may also pull PIN or card numbers from older adults who click on links in phone text messages that ask for the same information.²

In a survey of over 10,000 people using EBT cards for government benefits, over half said they have little to no understanding of skimming or phishing, and 87% said they have tried to protect their cards, according to Propel, which creates software to help people with low incomes improve their finances.³

The lack of knowledge and an inability to protect themselves has left people with EBT cards vulnerable to fraud. A second Propel survey of over 1,700 victims of EBT theft revealed:³

• Half of victims don’t know how or where their benefits were stolen
• 53% became food insecure because of the theft
• 44% had to borrow money or go into debt

Among stolen government benefits, the theft of SNAP benefits accounted for 11% of identity theft cases based on 2023 data from victims who reported to the Identity Theft Resource Center, a nonprofit organization dedicated to reducing identity theft and fraud.⁴

How is the government addressing SNAP benefits theft?

Sen. Wyden joined fellow Sens. Bill Cassidy (R-La.) and John Fetterman (D-Pa.) to introduce the Enhanced Cybersecurity for SNAP Act in March. If passed and signed into law, the act would call for:⁵

• EBT cards with chips and a phase out of swipe-only cards
• Free replacements for stolen or hacked cards
• User friendly websites and smartphone apps to help people manage their EBT accounts
• New USDA rules that require EBT cards to have anti-fraud technology

Some states are already doing their part to beef up EBT card security for older adults. California and Oklahoma SNAP recipients will receive chip-enabled EBT cards in summer 2024.⁵ SNAP users will still be required to use their PIN number.

While work is still needed to prepare retail stores to accept chip-enabled SNAP cards, adding an extra layer of security is a step in the right direction. The Propel survey of EBT theft victims found that 90% want other security measures in addition to chip-enabled cards, such as the ability to:

• Lock down an EBT card when it’s not in use
• Block out-of-state purchases
• Access EBT balance information through mobile apps

How is the government helping to recover stolen SNAP money?

Under federal law, people who report stolen SNAP money to their state SNAP agency can receive either the full amount of money stolen between Oct. 1, 2022, and Sept. 30, 2024, or two months of benefits—whatever is the lesser amount.⁷ To date, the federal government has reimbursed victims of fraud over $30 million.⁸

But in October 2023, Sen. Fetterman was one of several lawmakers who sponsored the Fairness for Victims of SNAP Skimming Act which, if enacted, would change the current law to lift restrictions on reimbursements so that victims get back all of their stolen money.⁶ According to the Propel survey of EBT theft victims, 55% said they either sought but failed to get reimbursed or never filed a claim at all.³ 

Maryland, for example, expanded its reimbursements of stolen SNAP benefits in February, meaning victims can receive state money to cover losses that the federal government didn’t cover.⁹

What can older adults do to prevent SNAP identity theft?

The USDA offers older adults a number of tips to keep their SNAP EBT accounts safe when using their EBT cards:¹⁰

• Create a hard-to-guess PIN number
• Never share your PIN or card number
• Change your PIN number once a month, especially before your benefits kick in
• Monitor your EBT account for suspicious charges
• Ignore calls or texts asking for your PIN or card numbers

Sources

1. National Council on Aging. What Is SNAP and How Do I Apply? Found on the Internet at https://www.ncoa.org/article/what-is-snap-and-how-do-i-apply

2. National Council on Aging. What Is EBT Card Skimming? Found on the Internet at https://www.ncoa.org/article/what-is-snap-and-how-do-i-apply

3. JoinPropel.com. They're Stealing Food from My Kids': SNAP recipients and the struggle against EBT theft. May 22, 2024. Found on the Internet at https://www.joinpropel.com/reports/%27they%27re-stealing-food-from-my-kids%27%3A-snap-recipients-and-the-struggle-against-ebt-theft-

4. Consumer Affairs. Unveiling the threat: Safeguarding your identity from benefit scams. April 10, 2024. Found on the Internet at https://www.consumeraffairs.com/finance/safeguarding-your-identity-from-benefit-scams.html

5. Ron Wyden United States Senator for Oregon. Wyden, Fetterman, Cassidy and Bipartisan Members of Congress Introduce Enhanced Cybersecurity for SNAP Act to Secure Food Benefits Against Hackers and Thieves. March 7, 2024. Found on the Internet at https://www.wyden.senate.gov/news/press-releases/wyden-fetterman-cassidy-and-bipartisan-members-of-congress-introduce-enhanced-cybersecurity-for-snap-act-to-secure-food-benefits-against-hackers-and-thieves

6. United States Department of Agriculture Food and Nutrition Service. Chip Cards are Coming to SNAP EBT. Found on the Internet at https://www.fns.usda.gov/snap/ebt/modernization/retailer-notice/chip-card-retailer-notice-CAOK

7. John Fetterman U.S. Senator for Pennsylvania. Fetterman, Gillibrand Introduce Bipartisan Bill to Return Benefits to SNAP Recipients. Found on the Internet at https://www.fetterman.senate.gov/press-releases/fetterman-gillibrand-introduce-bipartisan-bill-to-return-benefits-to-snap-recipients/

8. United States Department of Agriculture Food and Nutrition Service. SNAP Replacement of Stolen Benefits Dashboard. Found on the Internet at https://www.fns.usda.gov/data-research/data-visualization/snap-replacement-stolen-benefits-dashboard

9. Newsweek. SNAP Benefits Update as Program Expanded in One State. Feb. 8, 2024. Found on the Internet at https://www.newsweek.com/snap-benefits-update-benefit-fraud-maryland-1868173

10. United States Department of Agriculture Food and Nutrition Service. Addressing Stolen SNAP Benefits. Found on the Internet at https://www.fns.usda.gov/snap/stolen-benefits