The California Division of Social Providers admits it has misplaced $439 million in stolen Digital Profit Switch (EBT) advantages since 2021. This system observed a $100,000 month-to-month loss midway by way of 2021, however did nothing. Now, the state is shedding $10 million every month as a result of EBT theft.
The Division of Social Providers continues to be investigating how widespread this theft has change into however the pattern is rising. In January of this 12 months, $14,181,029 in taxpayer supplied EBT funds merely vanished. Scammers can entry account info in quite a lot of methods with out getting access to the precise EBT card. Skimming and phishing scams have been on the rise.
“EBT theft cruelly robs susceptible people of the general public advantages they’re legally entitled to,” mentioned District Lawyer Hochman. “Along with immediately taking vital monetary help away from kids, households, and the aged, public help fraud steals from taxpayers. Our Workplace will proceed to vigilantly examine and prosecute these circumstances and maintain offenders totally accountable for his or her felony actions. We’re additionally working carefully with victims and the LA County Division of Public Social Providers to return the stolen advantages.”
Arrests are uncommon as these fraudulent transactions could be onerous to hint however punishments are harsh. One such scammer in California confronted 10 counts of felony identity theft, three counts of felony grand theft, and one misdemeanor cost of obstructing a regulation enforcement officer after stealing 1000’s by way of skimming practices. He now faces as much as 10 years in jail.
Over 3 million individuals within the state obtain EBT playing cards by way of SNAP (Supplemental Vitamin Help Program). No state can afford to lose $100 million per 12 months as a result of fraud. That is one thing that must be reassessed on the federal stage as EBT fraud happens in all places. Washington state reported misplaced $5.5 million to EBT card scams in 2024, for instance. A latest police sweep of the DC space discovered 27 skimming units, stopping an estimated lack of $7.2 million.
Did I point out that EBT playing cards wouldn’t have chips? Each financial institution pressured customers to modify to chip expertise years in the past, however the US authorities, per regular is behind. Sens. Invoice Cassidy (R-La.) and John Fetterman (D-Pa.) have been attempting to push by way of the Enhanced Cybersecurity for SNAP Act that might section out swipe-only playing cards and supply recipients with further info to handle their accounts. But, the act would additionally reimburse recipients with 100% of stolen funds which may result in completely different types of fraud.
Stealing from the poor is abhorrent conduct. A survey of 10,000 welfare recipients discovered that over half had little to no understanding of phishing or skimming scams. Round 87% reported taking some motion to forestall their playing cards. A second survey of 1,700 EBT rip-off victims revealed that 44% have been pressured to borrow cash elsewhere or go into debt, 53% became food insecure, and half of these victims do not know how their funds have been stolen. Solely 55% of theft victims have been reimbursed for his or her stolen funds. One thing should be performed to guard not solely the welfare recipients however the taxpayers who could also be pressured to fund EBT fraud.
