New SNAP Law Could Transform Benefits – Here’s the Plan

An upcoming SNAP law could protect millions of residents across the country from fraud. New Jersey lawmakers have introduced federal legislation to combat scammers posing as SNAP recipients. On Monday, July 22, Congressman Josh Gottheimer, Senator Brian Stack, and New Jersey Senate President Nicholas Scutari announced the Stop Scammers, Card Abuse, and Malicious Skimming Act, or Stop SCAMS Act.

It comes after data from the U.S. Department of Agriculture’s Food and Nutrition Service (FNS) revealed that in the first quarter of 2024, approximately 177,000 cases of Supplemental Nutrition Assistance Program (SNAP) fraud were detected in 46 reporting states.

Legislation

If passed, the proposal would force states to notify recipients of the dangers of card skimming and other fraud, as well as fix security flaws in EBT cards, such as the lack of an embedded chip. This new SNAP law calls on all 50 U.S. states to switch to more secure chip-enabled cards within five years and requires the Secretary of Agriculture to issue cybersecurity and digital regulations to help address Electronic Benefits Transfers (EBTs) technological vulnerabilities.

EBT Security

Electronic Benefit Transfer (EBT) cards, which function similarly to debit cards and are loaded with funds each month for use at participating retailers, are used by SNAP recipients to manage their benefits. They are vulnerable to fraud, including cloning, phishing, and skimming, just like standard debit or credit cards.

According to New Jersey, $913,225 in stolen SNAP benefits were reported in the first quarter of 2024. Victims who successfully filed claims were reimbursed $774,765. The plan, which was referred to the state Senate Health Committee in April of this year, is modeled after bill S2873.

Congressional Support

As Congressman Josh Gottheimer stated, “It is cruel scammers and fraudsters who are willing to stick it to starving children and families only to make a buck for themselves.”. He also underscores that, besides this shameless act, at the end of the day, food security should not be a partisan issue because hunger does not discriminate.

Federal benefits officials are dealing with a continuous fraud problem, particularly with digital products like credit cards. Similarly, New Jersey Senate President Nicholas Scutari underscores the need for greater government oversight. Congressman Gottheimer’s proposed legislation aims to help all individuals, not just those in New Jersey, and is projected to have a big impact nationwide.

Nationwide Issue

Unfortunately, EBT card fraud is rampant across the country, and several states have taken action to combat this type of fraud. Proposed legislation in New York, the state with the highest number of fraud cases in the country, would automatically cancel compromised EBT cards and make SNAP theft a Class D felony.

Importance

Using an electronic benefits transfer system, people who receive government assistance can make payments with their benefits. This is the federal benefit delivery system for the Supplemental Nutrition Assistance Program (SNAP), which has been working since 2004 in all 50 states. In addition, state governments provide benefits and monitor their use through the EBT system.

Beneficiaries receive a plastic payment card with a PIN and magnetic stripe. Programs such as Temporary Aid for Needy Families (TANF), the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and several state general assistance initiatives, in addition to SNAP, use or are being evaluated for use of EBT.

Thanks to these EBT cards, SNAP benefits are accepted at ATMs, point-of-sale (POS) terminals, and retailers that participate in EBT. Without these cards, SNAP beneficiaries would not be able to receive their funds and take advantage of all the selected retailers and other locals to buy nutritious food.

The proposed Stop SCAMS Act is a significant step towards safeguarding millions of SNAP beneficiaries from fraud. By enhancing the security of EBT cards and increasing awareness of potential scams, this legislation aims to ensure that the assistance provided reaches those who need it most. With bipartisan support and a focus on food security, this law could make a profound impact nationwide, protecting vulnerable populations and maintaining the integrity of the SNAP program.

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