EBT Fraud Prevention: How to Protect Your Benefits

The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, helps low-income families afford groceries. The Electronic Benefits Transfer (EBT) system enables SNAP beneficiaries to use their benefits digitally.

Recently, criminals have been targeting these benefits through methods such as card skimming and cloning. This means your EBT benefits are at risk of being stolen discreetly. This article discusses some critical EBT fraud prevention techniques that you can use.

What Causes EBT Benefits Fraud?

EBT fraud in government payment programs arises from a combination of factors, including the size and complexity of these systems and weaknesses in oversight. The EBT system handles massive financial transactions and operates under strict regulations, making it difficult for federal and state agencies to monitor and address fraudulent activities effectively. Limited resources and funding further hinder developing and implementing adequate fraud prevention measures.

Technological and security vulnerabilities also play a significant role. Many programs still use magnetic-stripe EBT cards, which lack the advanced security features of chip-enabled cards, making them more vulnerable to unauthorized access. Poor PIN security, such as using predictable codes like “1234,” increases the risk of account breaches. Identity theft is another major issue, with fraudsters exploiting gaps in verification processes to impersonate legitimate beneficiaries and redirect funds.

Combating benefits fraud requires a comprehensive strategy. This includes adopting advanced technology such as predictive analytics, improving identity verification systems, and enhancing monitoring capabilities. Strengthening cross-agency collaboration is also critical for identifying and addressing vulnerabilities in these essential programs.

What Are the Common Ways Scammers Can Target Your EBT Benefits?

EBT cardholders should be cautious of scams aimed at stealing their benefits. Everyday fraudulent activities include:

• Promises of “Gift Cards” or “Free Government Cell Phones”: Scammers might lure individuals with the offer of free products or services, such as government cell phones or gift cards, to collect personal information. Authentic programs do not require disclosing sensitive EBT information for such promotions.
• Fake “Protection Plans” Claiming to Be Connected with State Programs: Scammers often offer bogus protection plans to access personal data, purporting to be linked with state EBT programs. Official state agencies do not support third-party protection plans for EBT cards.
• Messages from “Concerned Citizens” with Seemingly Official Contact Details: Some scams feature messages from individuals claiming to be concerned citizens who provide official-looking contact information to resolve alleged security issues with EBT cards. These are attempts to trick recipients into giving out personal details.
• Unsolicited Texts or Emails Asking for EBT Information: Scammers frequently send messages requesting EBT card numbers, PINs, or other personal information. Legitimate entities do not ask for sensitive details through insecure methods like texts or emails.
• Using Your Missing EBT Card: Scammers can misuse your stolen EBT card by making unauthorized purchases. If they have both your card and PIN, they can access your benefits at ATMs or stores, depleting your funds before you realize the theft. This can happen quickly, especially if your card information was skimmed or stolen in a phishing attack.

Different Types of Techniques to Prevent Yourself from EBT Fraud

There are many SNAP security tips that you can follow; here’s a look at them:

Use ebtEDGE for More Insight

The ebtEDGE platform, available through its website or mobile app, provides EBT cardholders various tools to manage and protect their benefits. On ebtEDGE, users can access several essential features:

• Freeze/Unfreeze Card Access: If you misplace your EBT card, you can temporarily disable it to prevent misuse and reactivate it when you find it.
• Request a New Card: If your card is lost, stolen, or damaged, you can request a replacement through the platform.
• Review Transaction History: You can review up to 365 days of transaction history to keep track of your spending and manage your benefits effectively.
• Change PIN, Password, and Email Address: Update your security settings to keep your account secure and ensure you receive important updates.
• Block Internet or Out-of-State Transactions: Increase security by blocking transactions made online or outside your home state.

To use these features, you can visit the ebtEDGE website or download the ebtEDGE app from the Apple App Store or Google Play Store. Register your account using your EBT card number and set up your login details. The app also offers biometric login features like fingerprint or facial recognition for convenient access.

Be Careful With the “Spammy Emails”

When you encounter a suspicious email, text message, website, or social media account, carefully safeguarding your personal information is crucial. Refrain from clicking on any links or downloading attachments from these sources, as they could contain malware or redirect you to phishing sites that aim to steal your data.

Be wary of unsolicited messages that demand immediate action or personal information. Communications that use generic salutations like “Dear Customer” should also raise suspicion. Often, fraudulent messages are littered with spelling and grammar mistakes. Another warning sign is unusual URLs; always hover over links to check if the address looks correct and doesn’t mimic a legitimate site with minor misspellings or an odd domain name.

To report suspicious activities, you can take the following steps: Forward phishing emails to the Anti-Phishing Working Group at [email protected], send suspicious texts to 7726 (SPAM) to inform your mobile carrier, report fraudulent websites to the Federal Trade Commission (FTC) at ReportFraud.ftc.gov, and use reporting features on social media platforms to flag fake accounts or posts—for instance, on Facebook, you can select “Find support or report profile” on the suspicious profile’s page.

For protection, always verify the source of suspicious communication by contacting the organization directly through their official contact information. It’s also advisable to keep your devices secure with the latest security software and regularly monitor your financial and online accounts for any unauthorized transactions.

Protect Your Pin

Protecting your EBT card’s PIN is essential to safeguard your benefits from unauthorized access. Here are detailed guidelines to help you maintain the security of your EBT card and PIN:

• Choose a Secure PIN: When selecting a secure PIN, avoid using predictable sequences such as “1234,” “1111,” or parts of your birth year, as fraudsters easily guess these. Additionally, do not use personal information like your Social Security Number or birth date, which unauthorized individuals can obtain and exploit.
• Regularly Update Your PIN: Regularly updating your PIN is important for maintaining security. After completing online transactions with your EBT card, consider changing your PIN to reduce the risk of potential exposure. Routine changes also strengthen security, making accessing your benefits more difficult for unauthorized individuals.
• Safeguard Your PIN: Safeguarding your PIN is crucial for protecting EBT benefits. Never share your card number or PIN through email, text, or phone, as legitimate agencies like the Department of Social Services (DSS) will never request this information. Avoid writing down your PIN or storing it with your card, as having both allows unauthorized access to your benefits. Additionally, be cautious of unsolicited requests for your card details or PIN, and report any suspicious communications to your local DSS office.
• Secure PIN Entry: When entering your PIN at an ATM or point-of-sale terminal, cover the keypad with your hand or body to prevent others from seeing it. Additionally, inspect card readers for unusual attachments or signs of tampering, as these could indicate the presence of skimming devices.
• Monitor Your Account: Regularly check your EBT account balance and transaction history to spot any unauthorized activity. If you notice any unfamiliar transactions, contact EBT customer service or your local DSS office immediately to report potential fraud.

Some states offer the option to temporarily freeze your EBT card when it’s not in use, which can help prevent unauthorized transactions. Consider signing up for transaction alerts to receive notifications of account activity, allowing you to respond to any suspicious use quickly.

Check for Skimming Devices

Protecting your payment card information is essential to prevent unauthorized access and financial loss. Skimming devices, attached by fraudsters to legitimate card readers, capture card data during transactions. Recognizing and avoiding these devices is key to safeguarding your information. Skimmers are illicit devices placed on card readers at ATMs, gas pumps, or point-of-sale terminals. They capture data from the magnetic stripe during a transaction. Mainly there are four types of skimming techniques that you could come across:

• Overlay Skimmers: These are placed over the existing card reader slot, often matching the original device’s appearance, making them difficult to detect.
• Internal Skimmers: Installed inside the machine, these are harder to spot as they are concealed within the device.
• Keypad Overlays: Thin, false keypads placed over the real ones to record PIN entries.
• Hidden Cameras: Small cameras positioned to record PIN entries as they are typed.

Check for misaligned, bulky, or inconsistent parts in color and material. Skimmers often protrude more than genuine readers. Gently wiggle the card reader and keypad; legitimate parts are usually secure, so any looseness may indicate tampering. Compare the machine with others nearby to spot any discrepancies.

When entering your PIN, you should also cover the keypad with your hand or body to block hidden cameras. Use contactless payment methods like tap-to-pay or mobile wallets when available, as these are more secure. Choose ATMs and terminals in well-lit, secure areas, such as inside bank branches, to reduce the risk of tampering. Regularly review your bank and credit card statements for unauthorized transactions. Enroll in transaction alerts to receive notifications of account activity, allowing quick responses to potential fraud.

If you suspect a skimming device, avoid using the machine and notify the establishment’s management or local law enforcement. Report unauthorized transactions to your bank immediately to freeze your account and prevent further fraud.

Deactivate and Replace Your EBT Card

If your EBT benefits have been stolen electronically, securing your account and requesting replacement benefits is important. Start by immediately contacting the EBT Customer Service Helpline, which operates 24/7, to report the theft and deactivate your compromised card. This will also initiate the process for a new card. The contact number for reporting varies by state, such as 1-888-328-6399 in New York and 1-877-328-9677 in California.

Next, complete the necessary forms to report the theft and request replacement benefits officially. For example, in California, you would fill out the “Report of Electronic Theft of Benefits” (Form EBT 2259). It’s essential to provide all required information accurately to prevent any delays.

Once you’ve completed the form, submit it to your local county office or caseworker. To ensure you comply with the rules, be aware of specific state deadlines for submitting these forms, such as within 90 calendar days of the theft in California.

Preventing EBT fraud requires educating both program participants and retailers. Participants can benefit from subscribing to SNAP Scam Alerts, which offer timely updates on emerging scams. Staying informed about fraud tactics and protecting personal information is crucial. Simple practices, like avoiding suspicious links and regularly checking account activity, can help prevent unauthorized access. Additionally, inspecting card devices for signs of tampering before use can provide an extra layer of protection.

Retailers also play a key role in fraud prevention by adhering to USDA regulations, which ensure SNAP benefits are used for eligible food purchases. Understanding compliance requirements and securing point-of-sale devices against tampering are essential steps. Detecting and preventing skimming device installations can safeguard transactions and protect businesses and participants.

Advanced technologies further strengthen fraud prevention efforts. Fraud detection software, using machine learning, can create personalized profiles for EBT cardholders, improving the identification of suspicious activities while minimizing false alerts. Detailed transaction analytics help administrators monitor and flag unusual activities in real-time. Additionally, enhanced identity verification methods, like biometric and two-factor verification, ensure that only authorized users access benefits, reducing the risk of unauthorized access.

Conclusion

Protecting EBT benefits from fraud requires both awareness and proactive steps. Cardholders can reduce the risk of fraud by staying informed about common scams, using tools like ebtEDGE for added security, and maintaining strong PIN practices. Monitoring accounts, avoiding suspicious activities, and reporting thefts quickly are key to safeguarding your benefits.

Additionally, working with retailers and implementing advanced security technologies will help strengthen fraud prevention systems. Ultimately, taking these precautions will ensure that your benefits remain secure and continue to support your needs effectively.

Frequently Asked Questions