Report: New York tops nation in food stamp theft reimbursement
(The Center Square) — New York leads the nation in stolen food stamp benefits that have been replaced by the federal government under a program aimed at offsetting the impact of electronic fraud, according to newly released data.
The data from the U.S. Department of Agriculture’s Food and Nutrition Service shows that more than 36,000 New Yorkers who have fallen victim to electronic theft of their Supplemental Nutrition Assistance Program benefits have had more than $17.5 million in stolen funds reimbursed by the federal agency.
To date, more than 50,000 claims have been made through the state-administered reimbursement program, totaling nearly $30,000, according to the USDA. At least 14,349 of the claims were denied, the department said.
The reimbursements are being made through a 2022 law approved by Congress requiring states to develop systems to replace SNAP benefits that have been stolen through electronic means, such as card skimming, cloning, third-party misrepresentation or phishing.
“Protecting the integrity of our nutrition assistance programs is a top priority,” Stacy Dean, USDA’s deputy under-secretary for Food, Nutrition and Consumer Services, said in a recent statement. “SNAP fraud is a despicable crime that takes advantage of families with low income. We are collaborating closely with state agencies to ensure that participants facing these hardships receive the support they need.”
Nationwide, 127,290 claims have been approved to date, with $61.5 million in replacement benefits issued to states, according to the USDA’s online dashboard.
Besides New York, Maryland, Texas and Illinois have reported the highest amount of replacement benefits, with each state exceeding 10,000 claims, the data shows.
The USDA notes that because state approval and implementation dates differ, the dashboard doesn’t include up-to-date data from all states, including California. The department also notes that comparisons between states are difficult because they are subject to different reporting periods.
Under the program, SNAP benefits can only be replaced up to two times per federal fiscal year, from Oct. 1 to Sept. 30, and replacement benefits are limited to the lesser of the amount stolen or two times the SNAP payments received in the last full month before benefits were stolen, according to the USDA.
New York state’s benefit recovery system, implemented in August, includes a website, app and toll-free number allowing welfare beneficiaries to report stolen EBT cards and apply for reimbursement of benefits. Residents of New York City must apply for stolen benefits and reimbursement through a different online portal.
