Federal authorities are amplifying their focus on suspected misuse within the Supplemental Nutrition Assistance Program (SNAP), the nation’s largest food aid initiative serving more than 40 million Americans. Officials allege schemes involving illegal card-reading devices, identity misuse and bogus applications are draining taxpayer dollars — but experts question how widespread these problems truly are.
Scrutiny Grows Over SNAP Fraud and Skimming Schemes
Senior advisers to the U.S. Department of Agriculture (USDA) argue that fraud and abuse pose a serious threat to the integrity of the SNAP system, citing incidents involving organized criminal groups and individual participants. Law enforcement has reported cases where thieves affix skimming devices to electronic benefit transfer (EBT) card readers to capture card information, clone benefit cards and siphon funds from recipients’ accounts.
Officials also note that USDA investigations have uncovered improper benefit distributions — including benefits issued to deceased individuals or duplicate recipients — prompting demands for more comprehensive data from state agencies. Some states have complied with federal information requests, while others have pushed back, citing privacy concerns.
Disagreement Over How Big the Problem Is
While some USDA investigators and security consultants argue that losses could total billions of dollars annually, not all researchers agree. SNAP advocates and academic experts emphasize that independent studies — including USDA audits from prior years — have historically shown relatively low rates of benefit theft compared with the overall program size.
Critics of the crackdown warn that heightened verification requirements or stricter retailer regulations might make it harder for eligible families to access food assistance without actually reducing fraud. They also point to challenges recipients face, such as administrative errors that can erroneously cut off benefits.
Real-World Impact and Everyday Abuse Tactics
Law enforcement cases illustrate a range of fraud tactics, from sophisticated skimming operations targeting card readers to simpler schemes in which benefit recipients improperly obtain non-eligible items or transfer benefits for cash. Some convicted individuals allegedly used stolen benefits to buy and resell bulk products for profit.
Meanwhile, SNAP participants themselves can sometimes become victims of fraud — with skimmers siphoning funds directly from their cards — or face hurdles when bureaucratic miscommunications lead to unexpected benefit interruptions.
