USDA is aware of increased reports of EBT theft due to card skimming, cloning, and similar fraudulent methods. On Dec. 29, 2022, President Joseph R. Biden signed into law the Consolidated Appropriations Act, 2023 (the Omnibus), which includes provisions for the replacement of stolen EBT benefits with federal funds.
USDA's FNS and ACF at the Department of Health and Human Services are aware of increasing reports of benefit theft by criminal actors through EBT card skimming schemes. After discussions with EBT processors and fraud prevention stakeholders, FNS and ACF have identified prevention measures that can be adopted to improve card security while we work towards longer-term strategies.
States have long served as incubators for testing strategies to help prevent program fraud. Based on an FNS partnership with 10 states, the "SNAP Fraud Framework" combines innovations in the use of analytics with concepts and practices from industry in order to more effectively detect potential fraud and improve administration and oversight.
SNAP Questions and Answers Concerning the Trafficking Controls and Fraud Investigations Final Rule
In February, 2013, FNS published final regulations revising the definition of trafficking. It subsequently came to our attention that some states were not clear that upon its effective date, federal law takes precedence and states were expected to implement the new federal trafficking definition.
The increased focus on SNAP integrity has required FNS and the states to review their procedures for responding to integrity issues, specifically a clarification of FNS' responsibility when a state employee is found guilty of fraud while administering the program.
USDA Efforts to Reduce Waste, Fraud and Abuse in the Supplemental Nutrition Assistance Program (SNAP)
Strengthening SNAP integrity, rooting out waste, fraud and abuse so that federal dollars are used appropriately.
The purpose of this memo is to transmit guidance regarding the sale of, or intent to sell, SNAP benefits and/or EBT cards in public or online through web sites and social media. FNS considers the offer to sell SNAP benefits to be a violation of SNAP regulations.
The sale or exchange of SNAP benefits for anything other than food sold by an authorized retailer is illegal – and is neither accepted nor tolerated by USDA.