New federal legislation will help victims of EBT fraud by refunding stolen money
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After a spike in EBT fraud left thousands of New Yorkers hungry, victims will finally get refunds for stolen money under a new federal bill that passed in the omnibus funding bill Thursday.
The SNAP Theft Protection Act, introduced by Sen. Kirsten Gillibrand (D-N.Y.) will order states to refund SNAP funds stolen from families, as well as provide federal assistance for states to better track fraud and improve outdated technology.
The legislation comes after the Daily News reported on the devastating impact of SNAP/EBT fraud earlier this month.
“No one should go hungry because they fell victim to identity theft or a skimming scam,” Gillibrand said in a release Wednesday. “ ... I’m proud to announce that our bill to reissue SNAP benefits to those who had them stolen will be included in this year’s omnibus bill. SNAP provides a lifeline for millions of New Yorkers, and I will keep doing everything in my power to protect the families who rely on it.”
The bill addresses a gaping hole for victims of SNAP fraud and the 1.7 million city residents who depend on benefits and are at risk for the crime, called “skimming.”
“The victims of EBT benefits fraud are vulnerable seniors, parents and disabled individuals who so depend on their food assistance money,” Sen. Charles Schumer (D-N.Y,) said. “Working with Sen. Gillibrand, we included protections against benefits crimes in the larger federal budget so we can help safeguard people’s money and deliver recourse to victims of fraud who did absolutely nothing wrong.”
Skimming is pervasive, its impact devastating and, until now, its path for recourse close to nonexistent.
Skimming works by installing difficult-to-detect devices on ATMs that steal the card’s information. SNAP/EBT cards function like prepaid debit cards with outdated technology. Once fraudsters have the card’s information, they can drain the account.
This type of fraud surged this year — cold-hearted crooks stole at least $730,000 from vulnerable New Yorkers from January to August, but that number is likely much higher, as many cases go unreported.
It largely has flown under the radar of government agencies while thousands of families went without food, groceries and basic essentials — and no way to get a refund. SNAP/EBT is federally funded by the USDA and administered by OTDA. USDA prohibits federal funds being used to reimburse stolen funds, and New York had a state statue in place to prevent refunds.
After more than $200 — more than a quarter of her monthly income — was stolen from her, one mother told the Daily News she was forced to dip into cash savings to buy her toddler a birthday cake and rely on family friends to feed her four children.
