Oregon Food Stamp Fraud targeting recipients of the Supplemental Nutrition Assistance Program (SNAP) commonly known as food stamps, is likely to escalate in Oregon, a security expert warns.
Fraud victims and supporters are demanding Oregon DHS and USDA act immediately to help low-income families and prevent having their food stamp benefits stolen.
Oregon Food Stamp Fraud Rates Increasing
In Oregon, more than 700,000 low-income families receive SNAP benefits. However, recent reports say that fraudsters are wiping out food stamps and cash assistance benefits from recipients.
According to a published article in KGW, the USDA issued in October a nationwide warning about SNAP fraud wherein thieves uses “card skimming” to steal SNAP benefits. Criminals secretly install a device on ATM readers that will record the information when recipients’ cards are swiped, then create fake cards for withdrawal and drain accounts.
Oregon DHS admits that like many other states, it is seeing a more increased number of EBT card skimming fraud cases than in previous years. Haywood Talcove of LexisNexis Risk Solutions’ Government Group, estimates that Oregon food stamps fraud likely amounts to $40 million dollars a month. His estimate is based on state numbers compared with national data — where reports of scammers ripping off SNAP benefits are through the roof, Talcove said.
The Oregon DHS Fraud Investigation Unit received roughly 55 complaints about EBT (electronic benefit transfers) card skimming last year, although the actual number of occurrences is likely much higher, explained an agency spokesperson.
READ ALSO: SNAP Fraud Costs Taxpayers Millions: Stolen Food Stamps On The Rise
Will there be a refund if food stamps are stolen?
In December, Congress is reacting to the problem by approving the 2023 Consolidated Appropriations Act that allows SNAP recipients to be reimbursed for stolen SNAP benefits.
Oregon has not implemented changes to allow EBT Oregon Food Stamp Fraud victims to be reimbursed for their losses yet. This is because ODHS is still waiting for federal guidance on how the replacement process will work.
Fixing EBT card vulnerabilities
Congress also told the UDSA to provide recommendations to states on extra fraud protection and address the issue of Oregon Food Stamp Fraud. Currently, EBT cardholders don’t have access to the same security technology as everybody else using the U.S. banking system. Suspicious and out-of-state purchases can be unnoticed and EBT cards don’t have a chip to avoid card skimming. The card just has the old magnetic stripe which makes them ripe for fraud.
READ ALSO: Stolen SNAP Benefits: States Respond Quickly to Aid Families
