Recipient Fraud

SNAP recipients must use their benefits as they were intended. Violations of program rules will not be tolerated. Individuals who intentionally break the rules for their own personal gain, such as lying about their income or identity to receive SNAP or selling their benefits for cash, face severe penalties including disqualification, criminal charges, and prosecution resulting in fines and/or prison time.

While states are responsible for ensuring recipient eligibility and monitoring their benefit use, we work closely with them to prevent, identify, and hold accountable those who commit recipient fraud. For example, we developed the SNAP Fraud Framework, a toolkit of evidence-based strategies to combat recipient fraud. This framework combines data analytics with best practices from industry to offer flexible models for states to detect and prevent fraud. We also regularly conducts evaluations of states’ fraud fighting efforts to ensure they are following the law and implementing the most effective program integrity strategies.

Retailer Fraud

SNAP retailers play a critical role in making sure vulnerable families have access to healthy foods. We provide clear guidance, resources, and support to SNAP retailers to help them understand and follow program rules — and most do. However, any retailers that choose to break the rules — such as exchanging SNAP benefits for cash (i.e., trafficking), selling items that are not allowable in SNAP, or lying on their application to be authorized for SNAP — are knowingly committing fraud and will face the consequences.

We take action against those attempting to cheat the system head on with a highly trained team of analysts and investigators dedicated to preventing, identifying, and prosecuting retailer fraud. Bad actors will be caught and subjected to penalties like:

• Temporary or permanent disqualification as a SNAP retailer.
• Application denial or authorization withdrawal.
• Financial penalties, known as a civil monetary penalty.
• Criminal charges and prosecution resulting in fines and/or prison time.

SNAP Scams

SNAP fraud can also occur when criminals steal SNAP benefits for their own personal gain via card skimming, card cloning, and other scams, often involving high-tech tools. We work aggressively – in partnership with other federal agencies and state and local law enforcement – to identify and prevent these scams that prey on Americans in need. Through sophisticated investigative techniques and coordinated sting operations, our investigators stop fraudsters in their tracks. We also take steps to educate participants on how to protect themselves from scammers. Further, we are continually working with states to modernize and strengthen technology – including rolling out chip card technology, the gold-standard for secure electronic transactions – to prevent fraud before it happens.