Agriculture's failure to force SNAP card upgrades is causing $555M in lost benefits, watchdog says

"The tally for SNAP "skimming," where fraudsters steal SNAP card data and use it to take the benefits, could cross half a billion dollars later this year, according to a new estimate released by the Agriculture Department's office of inspector general last week. That is in large part because the government still relies on half-a-century-old card technology to get money for food to over 41 million Americans a month as part of the Supplemental Nutrition Assistance Program, or SNAP."

"The electronic benefit transfer, or EBT, cards used to deliver SNAP lack the chip technology embedded in most common credit and debit cards, leaving them exposed to transnational crime rings that have been targeting America's most vulnerable citizens for years. Congress told Agriculture to create a rule forcing states to update their cards in late 2022, but the department still hasn't done so, leaving the program exposed in an "ongoing nationwide crisis," the watchdog report says."

Agriculture Secretary Brooke Rollins has emphasized focus on SNAP fraud, but the USDA has not implemented measures to stop widespread benefit theft. Inspectors estimate SNAP 'skimming' losses could exceed $500 million by year's end. The program still uses half-century-old EBT card technology that lacks chip security, making cards vulnerable to transnational crime rings. Congress directed USDA to require states to upgrade cards in late 2022, yet the department has not finalized the rule and plans publication in September 2026. USDA lost more than half of experts working on the rule. Estimated losses total $555 million since fall 2022.

Read at Nextgov.com