A scam to steal food stamp benefits from some of Kansas City’s poorest families picked up again this summer.
Thieves installed inconspicuous gadgets at grocery store checkouts, many along Independence Avenue in Kansas City’s northeast, and skimmed the data — and dollars — right off the EBT (electronic benefit transfer) cards the state issues to distribute aid.
Missouri officials believe they have largely contained this latest wave of fraud that’s stolen grocery money from about 1,500 people.
“(But) they’ll come up with another scheme,” said Dana Carrington, chief of investigations with Missouri’s Dept. of Social Services.
The Supplemental Nutrition Assistance Program, or SNAP, is one of 15 federal food aid programs. Combined, they reach a quarter of all Americans each year. SNAP dollars, which are designated to low-income people, can be used to buy groceries.
States distribute SNAP on EBT cards that look, and can be used, like a credit card. But unlike credit cards, which contain a chip that makes data harder to steal, EBT cards leave information like account numbers and PINs unencrypted. When someone swipes an EBT card’s magnetic strip through a phony card reader, they’re basically handing over the keys to their food stamps.
How SNAP or Food Stamp Dollars Are Stolen
Carrington said criminals often place skimmers at self-checkout stations in small bodegas where security is limited. Most often, the stores are in poor neighborhoods. Once an EBT card is swiped and account data is captured, criminals can transfer it to a cloned card. And that’s how money is stolen.
In the latest scam to target Kansas CIty, criminals use the EBT card data they’ve stolen in Kansas City and elsewhere. Then they cash in on that information by setting up phony storefronts in New York City. That makes it look like they were buying groceries there, when they were actually just draining accounts.
Victims can apply to have stolen funds reimbursed. Carrington said that process typically takes a couple of weeks. The federal government has money set aside for reimbursing victims of card skimming, however, those federal reimbursement funds are only guaranteed through Dec. 20. After that, federal money designated for reimbursements will run out if Congress doesn’t act.
While some states are looking at issuing more-secure chipped EBT cards, Missouri doesn’t have plans to do that. Chipped cards are more expensive, and their cost would fall to states without federal help.
In the meantime, Carrington said it’s important for people to take precautions so they can avoid being victims of benefit skimming.
He advises people to:
Avoid self-checkout stations at stores, which are more likely to have card skimmers;
Change their card identification or PIN number frequently; and
Set up their account to block out-of-state purchases.
How to Contact Missouri EBT Customer Service?
If you suspect that your card has been compromised, call 800-997-7777.
You can report a loss and begin the process of receiving replacement benefits by completing an Electronically Stolen Benefit Replacement Request form at https://bit.ly/4fUP94K.
For more info about how to avoid being a victim of fraud, visit https://mydss.mo.gov/ebt/protect-benefits.