Every month there is a growing threat that is quietly draining individuals’ food benefits before they ever reach the grocery store through a tactic called “skimming”, and that is putting vulnerable households at serious risk
Key insights:
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Protecting SNAP requires modernization and accountability — This includes providing chip-enabled cards, stronger monitoring, recipient education, retailer oversight, cross-agency coordination, and fair reimbursement for victims.
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Skimming is a growing problem — In the context of financial fraud, skimming refers to the illegal capture of personal data, typically through concealed electronic devices placed over legitimate card readers.
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The harm can be immediate and severe — If their food benefits are stolen through skimming, vulnerable households can lose essential food funds, deepening food insecurity in their community.
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Electronic Benefit Transfer (EBT) cards serve as a critical resource for the millions of Americans who depend on the nation’s Supplemental Nutrition Assistance Program (SNAP) to keep food on the table. The typical SNAP household is low-income and often includes children, seniors, or individuals with disabilities, who have earnings that fall at or below the federal poverty level. Based on household size, income, and other qualifying factors, these families receive monthly monetary assistance to help cover basic nutritional needs at authorized retailers.
Think of an EBT card as a debit card specifically designed for food benefits. Recipients use it to access their monthly balance at approved stores, making the process straightforward and dignified. However, like any electronic payment system, EBT is not immune to exploitation. One of the most pressing threats is a type of fraud known as skimming, which puts vulnerable households at serious financial risk.
What is EBT skimming?
Skimming, in the context of financial fraud, refers to the illegal capture of personal data, typically through concealed electronic devices that are placed over legitimate card readers. In the case of EBT fraud, criminals generally install tampered card terminals to steal EBT card information, including account numbers and PINs.
Unlike most modern credit and debit cards, EBT cards still rely on magnetic stripe technology, not more secure embedded chips. This outdated system makes them especially vulnerable to cloning, or the creation of counterfeit cards that contain the victim’s account number and PIN. Once a thief captures the data, they can create these counterfeit cards and drain benefits almost immediately, often within minutes of the monthly benefit deposit.
The result is that much needed food benefits, meant to last an entire month, are stolen without warning or recourse.
Why is EBT skimming so devastating
The consequences of EBT skimming go far beyond financial loss. For recipients, the theft of SNAP benefits can have immediate and severe impacts on their household food security and well-being. Other reasons why this form of fraud is particularly harmful include:
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- Irreplaceable funds — For low-income households, SNAP benefits represent a critical portion of their monthly food budget. Once stolen, these funds are often impossible to replace. Families may be forced to skip meals, rely on emergency food pantries, or divert money from other essential needs like rent or medicine.
- Outdated security technology — Despite advances in payment security, most EBT cards still use magnetic stripes, which can be easily copied with inexpensive skimming devices. By contrast, EMV chip technology, standard on most consumer credit and debit cards, makes cloning significantly more difficult.
- Speed and precision of theft — Thieves often time their attacks to coincide with the monthly benefit deposit cycle. Once benefits are loaded, stolen card data is used rapidly, sometimes within minutes, making recovery nearly impossible.
- Targeting vulnerable populations — EBT skimming preys on some of the most vulnerable members of society, including seniors, disabled individuals, and families living paycheck to paycheck. Many recipients may not have the resources or knowledge to monitor account activity regularly or to lock their cards after use, leaving them at greater risk.
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Beyond skimming: A broader challenge of fraud, waste & abuse
While skimming is a serious and visible form of EBT fraud, it is only one symptom of a larger systemic challenge that fraud, waste & abuse cause in federal benefit programs.
Other forms of fraud include: retailers trafficking in EBT benefits for cash, which is a violation of SNAP rules; misrepresentation of income or household size during application; duplicate or ineligible benefit issuance; and administrative errors that lead to overpayments.
Each instance, whether intentional or not, erodes public trust in the entire benefit system, strains limited program budgets, and diverts resources from those individuals who need them most.
With federal funding for social programs under constant scrutiny and subject to periodic budget constraints, it is imperative that every dollar is protected and used appropriately. Preventing fraud is not just about saving money — it’s about ensuring that limited public resources serve their intended purposes of reducing hunger and supporting economic stability.
How to prevent fraud, waste & abuse in SNAP
Addressing EBT skimming and broader program vulnerabilities requires a well-rounded strategy that features technology, policy, education, and oversight working together.
On the technology side, one of the most impactful steps forward would be transitioning EBT cards from outdated magnetic stripes to EMV chip technology. This upgrade alone would significantly reduce skimming risks, and federal investment in that infrastructure is a necessary part of making it happen. Alongside that, state and federal agencies should be leveraging data analytics and real-time transaction monitoring to flag suspicious activity, like multiple withdrawals across different locations within a short window of time.
Education also plays a bigger role than many people realize. A large portion of EBT users simply do not know how to protect themselves. Basic habits like covering the keypad when entering a PIN, routinely checking account balances, and reporting lost or stolen cards right away can go a long way in reducing exposure.
One of the most pressing threats is a type of fraud known as skimming, which puts vulnerable households at serious financial risk.
From an oversight perspective, the U.S. Department of Agriculture — the government agency that oversees SNAP — and state agencies need to conduct regular audits of authorized retailers and hold them accountable. Any retailer found engaging in trafficking or enabling skimming should face deauthorization and legal consequences as well. Equally important is making sure that victims of confirmed fraud are not left without recourse. Clear and consistent policies for replacing stolen benefits can help restore trust in the program and prevent the food insecurity that this type of fraud directly causes.
Finally, none of this works in isolation. Effective fraud prevention depends on strong coordination between state human services departments, law enforcement, financial institutions, and technology providers. Information sharing and joint task forces strengthen the ability to detect threats early and respond quickly when issues arise.
Protecting the safety net
SNAP is one of the nation’s most effective tools in the fight against hunger. However, its success depends on both integrity and accessibility. Skimming and other forms of fraud not only steal from individuals, but they also undermine confidence in the entire system.
Policymakers, administrators, and citizens must prioritize modernization, accountability, and victim protection. By addressing vulnerabilities like EBT skimming and reinforcing safeguards against waste and abuse, we can ensure that SNAP remains a reliable and secure resource for the millions of individuals who rely on it.
You can find out more about how public agencies are working to fight fraud in government benefit programs here
