Which states will be the first to pay back stolen SNAP funds? How can you claim stolen food benefits?

In the United States, 41.2 million or twelve percent of people depend on Supplemental Nutritional Assistance Program (SNAP) benefits, previously known as food stamps.

In late 2022, the US Department of Agriculture (USDA) announced that some beneficiaries had seen the value of the pre-paid debit cards distributed as a part of SNAP stolen by scammers. The exact scale of this fraud remains unknown, but the fact that vulnerable people have seen much-needed benefits stolen and, to this point, left without few options is extremely concerning.

How are SNAP benefits distributed?

The distribution of SNAP benefits is wracked with opportunities for fraud, which have only increased as the payment of benefits has been made electronic. Food and Nutrition Services (FNS), the agency within the USDA that administers SNAP, cannot deposit benefits directly into a beneficiaries personal bank account, like how payments for Social Security or the short-lived child tax credit passed under the American Rescue Plan that provided monthly payments to qualifying families. The political justification used to stop direct deposit is that there would be no way to ensure the benefits are used on the approved list of items. However, as attempts to scam beneficiaries increase, the security of the cards and accounts used by the state agencies that administer the programs has been called into question. In Maryland, for instance, the state is aware of at least 3,800 people who had more than $2.5 million dollars in benefits stolen.

Instead, when an applicant is approved for SNAP, an account is created in their name, and they are sent a debit card that connects directly with it. Then, at the grocery store, the beneficiaries can use the card at checkout, like any other credit or debit card.

How are the benefits being stolen?

The benefits are vulnerable to theft, and in recent years it looks like scammers have been able to increase the value of their ploy. In December, the USDA said that they had become “aware of increased reports of Electronic Benefit Transfer (EBT) theft due to card skimming, cloning, and similar fraudulent methods.” Skimming devices can be installed at ATMS and on other card reading machines to obtain the EBT number and associated pin to steal the funds remotely. Other scammers deploy phishing e-mails, texts, and calls, to convince the beneficiary to provide sensitive information to steal their benefits.

There is little information available as to whether or not these cards are more at risk of fraud than a regular bank account.

Which states will reimburse those whose benefits have been stolen?

In response, a program to help households regain these benefits was included in the Omnibus spending bill signed into law on December 29, 2022. The new law mandated that the USDA “issue guidance to state agencies and promulgate regulations to protect and replace SNAP benefits stolen via card skimming, card cloning, and other similar fraudulent methods.”

State agencies that are tasked with the distribution of benefits were required to “submit plans for the replacement of stolen benefits using federal funds.”

Now, after four months, less than five states are offering support to SNAP beneficiaries to help them re-coup any value lost. The plans were supposed to be submitted to the USDA by 27 February. As of 5 April, only five states have submitted their plans to the FNS, the agency within the USDA that administers the program. These four states are Alabama, Delaware, Iowa, Maryland, and Vermont, which together make up less than seven percent of the country’s total population.

Alabama

No information has been released from the state as to how victims of fraud should go about informing the state that their benefits have been stolen. The plan approved by the USDA is not set to begin until June 2023, so in the meantime, it may be best to contact the county in which you live for more information.

Deleware

Deleware is the most recent state to have its plan approved by the federal government. However, no official guidance has been made to the public. Those who are facing a food emergency should call 2-1-1 or 1-800-560-3372, or text (302)231-1464 to be placed in contact with a case worker from the Department of Health and Social Services to receive information on what to do if you are the victim of benefit theft.

Iowa

After speaking with a representative at the Iowa Department of Health and Human Services, I was told that those who are victims of fraud must file a police report declaring that their benefits had been stolen. Then, they must contact the state’s EBT customer service department, which will help them file a claim for their reimbursement to be processed. For more details, victims of fraud should call 1-800-359-5802.

Maryland

In Maryland, those who have seen benefits stolen between 1 October 2022 and 28 February 2023 must file a claim with the state by 31 May 2023. If benefits are, or were, stolen after 28 February, a claim must be filed within forty-five days “from the date you discovered your benefits were stolen.” Claims can be made at the Department of Health and Human Services’ website.

Vermont

SNAP beneficiaries in Vermont who had their balance stolen between Oct. 1, 2022, and March 14, 2023, a notice must be claimed by 12 April 2023. Those who have benefits stolen between stolen after 14 March but before September 2024 must file a claim within thirty days of the event.

According to the state authority tasked with distributing SNAP benefits, victims of fraud should call the Benefits Service Center at 1-800-479-6151 or visit the nearest local district office to report the event. Then, you will need to “submit an attestation of loss form” within ten days of reporting to the office. Form 271 can be printed, or a copy can be requested by calling the number above. One can either submit it through the state’s document uploader or by dropping it off at a district office.

What should you do if you don’t live in one of these states?

Any victim of fraud should contact their state or country office to find out more information on how to file a report and how to receive food assistance in the short run after SNAP accounts have been wiped clean. The USDA has also set up a website with additional information for those seeking help after having their benefits stolen.