NEW YORK — Sen. Kirsten Gillibrand (D-NY), Ben Cardin (D-Md.) and Chris Van Hollen (D-Md.) face a rash of thefts from Supplemental Nutrition Assistance Program (SNAP) recipients. ) introduced a bill that will strengthen security measures to prevent identity theft and skimming scams.
Skimming occurs when criminals place a device at an ATM or point of sale to capture cardholder PIN information and data stored on the card’s magnetic stripe.
New York State reported that thousands of New Yorkers had their Electronic Benefits Transfer (EBT) cards stolen in 2022, resulting in losses totaling more than $730,000.
The problem, Gillibrand says, is that SNAP EBT recipients don’t have the same fraud protections as people with credit card, debit card, and prepaid card users.
Credit, debit and prepaid card users are covered by the Electronic Funds Transfer Act (EFTA) and regulation, which helps people who have been scammed to recover funds from losses and unauthorized electronic transfers.
When the USDA transitioned from paper food stamps to EBT cards, it never updated its regulations to protect recipients from fraud.
The SNAP Theft Protection Act would allow states to immediately reissue stolen benefits to affected families using already allocated federal funds and help states track SNAP theft data to determine the pervasiveness of crime and develop mechanisms to improve security technology.
HOW TO PROTECT YOURSELF FROM THEFT WITH ‘SKIMMING’
There are several ways to prevent your benefits from being stolen through an EBT skimmer scam.
Here are some tips from New York City’s 311 system.
1. INSPECT THE TERMINAL BEFORE EXCHANGING YOUR CARD
Before completing the payment, check the payment terminal. Make sure nothing suspicious is attached to the swiper or keyboard. Remember that skimmers are designed to be small and hard to see, so look for any signs of tampering.
All pieces must be strong, aligned and solidly connected to each other. If you see parts that aren’t properly secured, that appear to be lifted, or that one part of the machine is covering another part where it shouldn’t, all of these could be signs that a skimmer has been installed.
Watch out for loose parts or damage to the machine. You can inspect the car with your eyes and touch to make sure you don’t spot anything suspicious.
2. CHECK THE SECURITY SEAL
Some card readers, especially those near gas pumps, come with a security seal that protects the technology inside. If the gasket is damaged or compromised, it could indicate that a skimmer has been installed. Be safe and use a different payment terminal.
3. BE CAREFUL WHERE YOU BUY.
Skimmers are more likely to be placed in dark, unattended areas. You can protect your benefits simply by swiping your card on card readers that are located in well-lit, guarded areas where it would be more risky for a thief to install a skimmer.
4. CHANGE YOUR PIN FREQUENTLY
If your benefits are stolen, you may be able to prevent future transactions by changing your PIN. Changing your PIN frequently can help protect your benefits.
5. USE YOUR STATE’S SECURITY FEATURES
Some states will allow you to freeze your benefits, stop out-of-state transactions, or implement other security features that can protect your benefits from theft. Use these features to protect your benefits.
PHISHING IS STILL A COMMON EBT SCAM
The USDA issued a fraud alert in October 2022 due to increased reports of SNAP phishing scams.
Cardholders may receive a text message that their EBT benefits have been blocked and must call an unknown number to recover the benefit.
When the cardholder calls, the fraudster asks for the card number and PIN to verify the account. Thus, the beneficiary ends up losing money.
Another common ploy is when the criminal asks the payee to complete renewal paperwork, verify certain information, or request other perks like a free phone or free gift card. Scammers have sometimes claimed that they may offer a benefits protection plan. Scammers can give you many different reasons to try to force you to make that call. Once communicated, during the conversation they will ask you for your card number and PIN.
Other scammers post links on social media offering grants, prizes or gifts to people receiving EBT benefits. When you click on the link, you will be asked to enter your card number and PIN to verify that you are eligible for these benefits.
HOW TO PROTECT YOURSELF FROM A PHISHING SCAM
The easiest way to protect yourself is to simply never reveal your card number or PIN to anyone, for any reason. Representatives from your state government office will never ask you for this information. They will usually ask you for your case number instead.
Don’t click on unknown links. Do not reply to text messages from unknown numbers. Fraudsters will use a sense of urgency to prompt you to make impulsive decisions, so take a deep breath, calm down, and think carefully before continuing with any of these messages.
WHAT CAN YOU DO IF YOU LOSE YOUR BENEFITS DUE TO AN EBT SCAM?
If you lose your benefits due to an EBT scam, you must notify the state benefits office right away so they can cancel your card and send you a new one. If you don’t, the scammer could continue to steal your benefits month after month.
Unfortunately, the government generally doesn’t replace stolen EBT benefits, so you may not be reimbursed for lost funds. This can be disastrous for many low-income families, who depend on these benefits to feed their families. No benefit could mean no food.
CAN I GET MY MONEY AFTER AN EBT SCAM?
In general, the government will not replace or refund benefits lost due to an EBT scam. If you are the victim of a scam, you will need to inform your government office so they can cancel and replace your EBT card.
WHY ARE THERE SO MANY EBT SCAMS ON FACEBOOK?
There are many EBT scams on Facebook because it’s easy for scammers to create new accounts and spam comments from reputable organizations. For example, many state government offices don’t moderate their comments well, so scammers can sneak in links that look official. Be very careful when clicking on Facebook links!
If you believe your card has been cloned and your benefits stolen, suspect skimming overlays, call the HRA’s Fraud Unit immediately at (718) 722-8001.
To get a new EBT card and change your PIN, call the EBT Helpline at (888) 328-6399.
