Rising Food Stamp Skimming Cases Hurting Low-Income Families

A sign displayed on a convenience store's door saying they accept EBT payments. Taken by jetcityimage via Adobe Stock.

BY JACK DWECK

With poverty a growing problem in the state of New York, thieves are skimming the benefits from low-income families’ food stamp accounts, prompting calls for better security for these electronic benefits.

“I would do anything and everything for my kids,” said Fayette Dowdell, a victim of these cases and single mother who lost $600 in SNAP (Supplemental Nutrition Assistance Program) benefits. She told Spectrum News, “If I have to, I will not eat just to feed my kids.”

Over the past few weeks, residents of Rochester, NY, have reported their Electronic Benefit Transfer accounts being completely emptied out overnight. This was because of scammers attaching card skimming devices to grocery stores’ card readers. EBT is a system that provides SNAP members money to pay for food.

Monroe County, which includes Rochester, is investigating over 700 cases of EBT card skimming. The Monroe County Department of Human Services has solved 300 of these cases after working unlimited overtime.

The card skimming devices can be attached to grocery store card readers, and directly copy card and PIN numbers from EBT cardholders. The stolen data is then used to access a person’s EBT account and spend their electronic cash benefits. These cases can happen not only at cash registers, but ATM machines as well. It is important to closely examine the card reader or machine, or to scan a card’s chip instead of swiping, as that is how the card’s data is stolen.

New York’s SNAP program helps low-income families buy food products. Families who qualify receive a food stamp or EBT card, which is similar to a debit card. About 2.9 million households in New York are enrolled in this program. The number is on the rise because, according to a report by the state comptroller’s office, the rate of hunger in the state is up 10% from November, 2022.

In spring of this year, New York had received federal approval to replace stolen SNAP benefits under certain circumstances. Those who have fallen victim to this must contact the EBT Customer Service Hotline. After reporting the theft of their EBT card and requesting a replacement card, they are able to apply for replacement benefits. The Office of Temporary and Disability Assistance began accepting replacement applications in August. After applying for a replacement card, it will take 7 to 10 business days for one to receive it, according to OTDA.

“OTDA takes seriously any report of benefit theft,” said Anthony Farmer, OTDA’s Director of Public Information, “and continues to work closely with local, state and federal authorities to provide any information they require that will help bring perpetrators to justice.”

The OTDA is working with the USDA in order to come up with options that will further enhance the security of EBT to prevent these cases from happening again.