SNAP benefits have long been the target of fraud and have been the subject of numerous frauds.
Authorities have frequently cautioned people receiving SNAP assistance to be particularly cautious and alert for the current wave of widespread scams.
SNAP Benefits Scams
Rafal Los, the head of services GTM at the cybersecurity firm ExtraHop, claimed that the digitization of financial services creates an opportunity for thieves in addition to benefits for recipients. The Supplemental Nutrition Assistance Program, which provides benefits to qualified low-income individuals and households via the Electronic Benefits Transfer card, is the largest federal nutrition assistance program.
Scams involving SNAP payments have been reported in a number of states, and the Connecticut Department of Social Services issued a warning in August urging citizens who receive cash SNAP benefits to safeguard their cards from skimming schemes.
This kind of SNAP benefits scam has affected a few grocery and retail shops in Connecticut. Anywhere you swipe your EBT card, skimming can happen, according to the state of Massachusetts. Phishing is another possibility, the Federal Trade Commission has noted a nationwide increase in phishing scams.
According to Chris Kearney, chief information officer of TruWest Credit Union, the most typical phishing scam starts with a call, text, or email.
With more cybercriminals preying on the EBT system, EBT card frauds are also rising in California. Since 2021, there have been more reports of benefits being taken on average by about 4,000%. The California Department of Social Services said that by July 2021, the state had paid out around $92,000 in fraud allegations.
The state of California provided over $3.8 million to EBT fraud victims during the same time period in 2022. As a result, California suffered a loss of over $24 million in just one year.
In September, the Los Angeles County District Attorney’s Office filed charges against 16 individuals for their involvement in a fraud operation. More than 300 counterfeit EBT cards containing $400,000 in funds were also seized by authorities.
The majority of that money was taken from EBT users by the people charged using skimming equipment. California intends to cover all claims of fraud. However, they could not pay out the lost money if a second claim is made within three years.
The Los Angeles County Department of Public Social Services, the California Department of Social Services, and Bank of America’s Global Protective Services Team were among the organizations that the Southern California High Tech Task Force collaborated with.
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How to Change EBT Card PIN?
One method for attackers to steal SNAP recipients’ benefits is by skimming. According to the US Department of Agriculture, thieves are posing as SNAP caseworkers to try and get access to EBT card information from recipients.
The Agriculture Department also provided advice on how SNAP recipients should safeguard themselves against benefit scams. The organization advised recipients not to disclose their PIN to anybody outside of their homes and to hide the keypad when entering it into a machine.
Beneficiaries should also regularly reset their PINs and check their EBT accounts for any fraudulent charges. Beneficiaries should double-check card readers before making any transactions to make sure nothing suspicious is added to or layered on the card swiper or keypad.