Los Angeles, CA – A disturbing new trend is targeting some of LA’s most vulnerable residents – scammers are stealing food stamps through skimming devices illegally installed on card readers. This scheme has hit recipients of food stamps (SNAP) and cash assistance hard, draining accounts of thousands of dollars in benefits. As these critical programs aim to alleviate hunger and poverty, the lack of fraud protections for electronic benefit transfer (EBT) cards has left recipients unguarded against theft. In this article we talk about how Scammers in LA Target Struggling Americans, Stealing Food Stamps.
70-year-old Jackie Kirks found her SNAP account emptied of over $4,000 at an Albertsons in Long Beach. “That’s impossible,” she told the cashier when informed her balance was only $6. Homeless until September, she had been accumulating a sizable sum by buying discounted meals rather than groceries. The state agency confirmed her fears – someone had stolen her EBT card data and drained the balance.
How EBT Card Skimming Schemes Work
Thieves use skimming devices to steal EBT card data at card readers, then encode that data onto duplicate cards and use them to steal benefits. These devices can be slipped onto point-of-sale systems and ATMs quickly when staff are distracted. They read and store card data, while hidden cameras capture PINs. Lacking the encryption of chipped cards, magnetic stripe EBT cards are prime targets.
While banks issue credit and debit cards with embedded chips for greater security, state agencies administering SNAP and cash assistance still rely on the outdated magnetic stripe technology. With no federal chip card requirement for EBT cards, cost and logistical challenges of transitioning these multi-billion dollar programs contribute to the lag. But the lack of equal fraud protection for EBT users compared to credit/debit cardholders enables rampant theft that ultimately costs taxpayers millions in reimbursements.
Impacts on LA’s Most Vulnerable
Victims of EBT skimming can go days without being able to buy essential groceries while awaiting reimbursement capped at two months’ worth under federal law. From eating canned goods and visiting food banks, to skipping meals, the impacts are immediate for those already struggling. Others like Jeanneth Chavez, an LA mother of two, have faced threats of eviction when over $1000 in cash assistance was stolen via a New York transaction.
“It was very devastating,” Chavez said about the dozens of women facing the same crisis at her public services office. While given pamphlets on halfway houses in case of eviction, her father bought diapers when she couldn’t. Now she stays up until midnight when benefits deposit, changing her PIN repeatedly to deter future theft. “I get anxiety in the days leading up…How do I look at my baby in her face and know that I might not have funds for her diapers?” she asked.
Seeking Solutions
The federal food stamp reimbursement program ends September 2024 with no extension plans, leaving victims with little recourse. But some states are taking action – California and Oklahoma will pilot EBT chip cards this summer to enhance security. Last year, Maryland passed expanded reimbursements for stolen benefits from state funding if needed – a model advocates hope spreads. “If you’re not able to deposit it on a card in a way that ensures the family who’s eligible for the benefit can actually access the benefit, then it’s as if they never got the benefit to begin with,” said one Baltimore attorney.
For Jackie Kirks, having $4,000 stolen makes her feel exposed. She uses her SNAP card minimally now, never knowing if she’ll be skimmed again. “To be cautious of everybody, it’s not a way of living.” As scammers increasingly target LA’s poor, officials must address the inequities enabling this theft. Implementing chip card technology and expanding protections would help safeguard critical food and cash assistance so vital to alleviating hunger and hardship. The time is now to stop criminals from further targeting struggling Americans. I sincerely hope you find this “Scammers in LA Target Struggling Americans, Stealing Food Stamps? What You Need to Know!” article helpful.