SNAP fraud (Supplemental Nutrition Assistance Program fraud) generally falls into two categories: people abusing the system (recipients or retailers lying or selling benefits) and criminals stealing from recipients (skimming cards to steal funds).
Depending on your situation—whether you suspect fraud, have been accused of it, or had your benefits stolen—here is the breakdown of what you need to know.
1. Types of SNAP Fraud
A. Recipient Fraud (Committed by the beneficiary)
- Trafficking: Selling EBT benefits for cash or ineligible items (like alcohol, tobacco, or drugs). This is often done by selling the card or PIN to a retailer or individual for less than face value.
- Application Fraud: Intentionally lying on an application to get benefits. This includes underreporting income, hiding assets, or claiming household members who do not live with you.
- Double Dipping: Applying for benefits in two different states simultaneously.
B. Retailer Fraud (Committed by store owners)
- Trafficking: A store owner accepts SNAP benefits in exchange for cash (usually taking a cut for themselves) rather than for food.
- Ineligible Items: Knowingly allowing customers to buy non-food items (cigarettes, alcohol, electronics) with EBT cards.
C. Third-Party Theft (Recipient is the victim)
- Skimming/Cloning: Criminals place hidden devices on store card readers to copy EBT card data and PINs. They then create “clone” cards and drain the victim’s account.
- Phishing: Scammers send texts or emails posing as the government to trick recipients into revealing their card number or PIN.
2. Recent News & Updates (December 2025)
- Mandatory Re-application: As of December 2025, the Trump administration has announced moves to require SNAP participants to re-apply for benefits to weed out fraud.
- Crackdown on “Ghost” Recipients: There is a current federal push to identify deceased individuals or people claiming benefits in multiple states.
- Stolen Benefits Reimbursement: Federal rules regarding the replacement of stolen SNAP benefits (due to skimming) have recently changed. As of late December 2024, federal authority to replace stolen benefits expired, meaning reimbursement now often depends heavily on specific state policies rather than a blanket federal guarantee.
3. Penalties for Committing Fraud
SNAP fraud is a federal crime. Penalties can be severe depending on the value of the fraud:
- Disqualification: You can be banned from the program for 12 months (first offense), 24 months (second offense), or permanently (third offense or trafficking).
- Repayment: You will be required to pay back any benefits you were not entitled to.
- Criminal Charges:
- Under $100: Misdemeanor; up to $1,000 fine and/or 1 year in prison.
- $100 – $5,000: Felony; up to $10,000 fine and/or 5 years in prison.
- Over $5,000: Felony; up to $250,000 fine and/or 20 years in prison.
4. What to Do Next
If your benefits were STOLEN (Skimming/Theft):
- Change your PIN immediately.
- Contact your local SNAP office right away to report the theft.
- File a dispute with your state agency. (Note: Reimbursement rules vary by state; ask your caseworker specifically about your state’s current replacement policy for “electronic theft”).
If you want to REPORT fraud:
You can report suspected fraud (by a neighbor, store, or group) anonymously.
- USDA OIG Hotline: 1-800-424-9121
- Online: USDA Office of Inspector General Website
- State Level: Most state Department of Social Services (DSS) or Department of Human Services (DHS) websites have a “Report Fraud” button.
If you are ACCUSED of fraud:
- Do not ignore the letter. You typically have a short window (often 10 days) to request a hearing.
- Request a Fair Hearing. This pauses the process until a review can happen.
- Seek Legal Aid. If you cannot afford a lawyer, contact a local Legal Aid society, as losing SNAP benefits can be legally contested if the overpayment was due to agency error rather than intentional fraud.
