Organized Rings Targeted SNAP Benefits Through Skimming
Federal authorities tracked massive EBT theft as states replaced over $320 million in stolen benefits through late 2024.
Updated on Sept. 21, 2026 in Financial Crime
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Between October 2022 and December 2024, states replaced more than $320 million in stolen Supplemental Nutrition Assistance Program (SNAP) benefits. The fraud surge was driven by organized rings utilizing card-skimming technology to compromise EBT cards.
Why it matters
The widespread theft highlighted critical security gaps, as most SNAP EBT cards lacked embedded microchips to protect against the magnetic-stripe cloning used by perpetrators. Federal authority to replace these stolen funds expired at the end of 2024, complicating recovery for victims.
Federal prosecutors charged over 50 defendants in San Diego since 2023, while separate schemes in New York and the Ohio-California corridor involved alleged theft totals reaching $66 million and $1 million respectively.
The players
United States Department of Justice
The federal executive department is responsible for enforcing laws and administering justice in the United States.
Government Accountability Office
This independent agency provides auditing, evaluation, and investigative services for the United States Congress.
The details
Perpetrators installed skimming devices to capture EBT magnetic-stripe data and PINs, which were subsequently encoded onto cloned cards. In addition to skimming, these fraud rings engaged in identity theft, fraudulent applications, and retailer trafficking to drain public assistance accounts.
Timeline
October 2022 to December 2024 saw states replace $320 million in stolen benefits.
Federal authority to authorize these replacements expired on December 20, 2024.
California EBT beneficiaries experienced over $310 million in losses through January 2026.
In April 2026, the Justice Department charged five individuals for a $1 million theft scheme.
Legal Context
This wave of fraud follows a pattern set by the Government Accountability Office 2025 review of EBT security by documenting how widespread reliance on magnetic-stripe cards facilitates large-scale benefit fraud. The scale of the theft forced states to grapple with replacing hundreds of millions in losses before federal authority to do so lapsed.
The prevalence of skimming means beneficiaries must regularly check for unauthorized activity on their EBT accounts and report discrepancies immediately. Law enforcement agencies in major hubs like San Diego have intensified crackdowns, often requiring increased coordination with retail partners to secure point-of-sale terminals.
The takeaway
Beneficiaries can reduce the risk of skimming by inspecting card readers for physical tampering before use and regularly changing their PINs. Because federal replacement mandates have expired, verifying the security of local retailer hardware is now a critical step for maintaining account safety.
Further reading
Learn more about ongoing regulatory efforts in Financial Crime.
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Do you trust the federal government to effectively protect taxpayer-funded benefits from organized fraud rings?
