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.
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.
This letter is to follow-up on our earlier correspondence in which we requested that Craigslist post a notice regarding the illegality of selling SNAP benefits on its website and/or that SNAP benefits be added to its prohibited items list.
The USDA has determined that the sale or offer to sell SNAP benefits in public or online is an intentional program violation and has issued policy guidance to that effect. We have received complaints that individuals are using Facebook accounts to post advertisements and make offers to buy or sell SNAP benefits.
This letter is to follow-up on conversations the USDA Office of General Counsel had with your legal team in 2010, in which we requested that eBay post a notice regarding the illegality of selling SNAP benefits on its website and/or that SNAP benefits be added to its prohibited items list.
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.