NEW YORK — Sens. Kirsten Gillibrand (D-NY), Ben Cardin (D-Md.) and Chris Van Hollen (D-Md.) in the face of a spate of theft from Supplemental Nutrition Assistance Program (SNAP) recipients .) introduced a bill that will tighten 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 EBT (Electronic Benefits Transfer) 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 cards, debit cards 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 recover funds from losses and unauthorized electronic transfers.
When the USDA switched 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 households using already allocated federal funds, and help states track SNAP theft data to determine pervasiveness of crime and develop mechanisms to improve security technology.
HOW TO PROTECT YOURSELF FROM THEFT BY ‘SKIMMING’
There are several ways you can prevent your benefits from being stolen through an EBT skimmer scam.
Here are some tips from the New York City 311 system.
1. INSPECT THE TERMINAL BEFORE YOU SWIP YOUR CARD
Before completing the payment, please check the payment terminal. Make sure nothing suspicious is connected 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 the pieces must be resistant, aligned and solidly connected to each other. If you see any parts that aren’t properly attached, that appear to be lifted, or that one part of the machine is covering another part where it shouldn’t, all of these might be signs that a skimmer has been installed.
Beware of loose parts or damage to the machine. You can inspect the machine 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, are equipped with a security seal that protects the internal technology. If the seal is damaged or compromised, it might 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 at card readers that are located in well-lit and guarded areas where it would be more risky for a thief to set up 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 those 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 they need to call an unknown number to retrieve the benefit.
When the cardholder calls, the scammer asks for the card number and PIN to verify the account. In this way, the beneficiary ends up losing money.
Another common ploy is when the criminal asks the beneficiary to complete renewal paperwork, verify some information, or request other benefits such as a free phone or a free gift card. Sometimes scammers have said they can offer a benefit protection plan. Scammers can give you many different reasons to try to coerce you into making that call. Once you communicate, they will ask for your card number and PIN during the conversation.
Other scammers post links on social media offering grants, prizes, or gifts to people who receive EBT benefits. When the link is clicked, you will be prompted to enter your card number and PIN to verify that you are eligible for those 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 at your state government office will never ask you for this information. They will usually ask for your case number instead.
Do not click on unknown links. Do not reply to text messages from unknown numbers. Scammers will use a sense of urgency to pressure you into making impulsive decisions, so take a deep breath, calm down, and think carefully before continuing with any of those 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 should immediately notify the state office in charge of those benefits so they can cancel your card and send you a new one. If you don’t, the scammer may continue to steal your benefits month following month.
Unfortunately, the government generally does not 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 benefits might mean no food.
CAN I GET MY MONEY BACK AFTER AN EBT SCAM?
Generally, the government will not replace or reimburse benefits lost to an EBT scam. If you are a victim of a scam, you will need to tell 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 links that look official. Be very careful when you click on Facebook links!
If you believe your card has been cloned and your benefits are being stolen, suspect skimming overlays, immediately call the HRA Fraud Unit at (718) 722-8001.
To get a new EBT card and change your PIN, call the EBT Helpline at (888) 328-6399.
