If you’re an Electronic Benefits Transfer (EBT) cardholder, particularly for Supplemental Nutrition Assistance Program (SNAP) benefits, it’s crucial to be aware of the protections, or lack thereof, regarding theft, fraud, and unauthorized charges. This article provides an overview of the situation and explains why it’s important to act quickly if you suspect fraud or theft.
Lack of Federal Protections for EBT Cardholders
This Article Includes
- 1 Lack of Federal Protections for EBT Cardholders
- 2 Reporting Theft and Fraud: Timeliness is Key
- 3 The Vulnerability of EBT Cards to Fraud
- 4 State-Level Assistance and Recovery of Stolen Benefits
- 5 The Important Extension for SNAP Fraud Victims
- 6 Federal Government’s Role in Ensuring Benefits Are Replaced
- 7 Conclusion: Stay Vigilant and Act Quickly
Unlike some financial programs, EBT cardholders do not have federal protections when it comes to the loss or theft of their benefits. Federal regulations do not cover unauthorized charges or errors that occur with state-issued benefits. This means that if your benefits are stolen, or if there are errors on your account, the responsibility to report and resolve the issue falls on you.
Reporting Theft and Fraud: Timeliness is Key
One of the most important actions an EBT cardholder can take if they suspect theft or fraud is to report it as soon as possible. The Federal Government’s guidelines require that any suspected theft be reported within 30 calendar days from when the theft is discovered. Failure to report within this time frame could result in the loss of the opportunity to recover stolen benefits, leaving the cardholder without assistance.
The Vulnerability of EBT Cards to Fraud
EBT cards are susceptible to various fraudulent activities. Common methods used by criminals to steal benefits include card skimming, cloning, and other deceptive techniques. As EBT cards function similarly to debit cards, they can be compromised in similar ways. For instance, fraudsters may install card-skimming devices on ATMs or point-of-sale terminals to capture card information. This makes it even more important for cardholders to monitor their benefits closely and report any suspicious activities immediately.
State-Level Assistance and Recovery of Stolen Benefits
While federal protections are lacking, most states offer some level of assistance for EBT cardholders who have fallen victim to fraud. In many cases, states will replace stolen benefits, but this varies by state and the circumstances surrounding the theft. Cardholders must contact their local SNAP office to report the theft and follow the required procedures to initiate the recovery process. While not guaranteed in every situation, most states work with the federal government to ensure that benefits are replaced in cases of fraud.
The Important Extension for SNAP Fraud Victims
In 2024, the federal government extended the period during which SNAP benefits can be replaced for those who have fallen victim to theft or fraud. Previously, there was a deadline for reporting theft and receiving replacements, which was set to expire on September 30, 2024. However, under a new provision in the Continuing Appropriations and Extensions Act of 2025, signed by President Joe Biden, the replacement period has been extended until December 20, 2024. This extension ensures that victims of fraud have additional time to report and receive assistance, offering a crucial lifeline to those affected.
Federal Government’s Role in Ensuring Benefits Are Replaced
The federal government plays a significant role in helping SNAP recipients recover their stolen benefits. According to a statement by Catherine Buhrig, the associate administrator of the Supplemental Nutrition Assistance Program, state agencies are required to replace stolen benefits using federal funds. These agencies must follow federal guidelines and work to resolve cases of theft in a timely manner. As part of the federal directive, this replacement process will continue through January 2025, ensuring that more individuals can recover their benefits if they are victims of fraud or theft.
Conclusion: Stay Vigilant and Act Quickly
For EBT cardholders, protecting your benefits from fraud and theft requires vigilance and swift action. Although there are no federal protections against loss or theft, most states offer assistance for those who report fraud within 30 days. With the recent extension of the repayment period until December 20, 2024, those who have been affected by theft have more time to report and receive support. Always be alert to any suspicious activity, and don’t hesitate to contact your state SNAP office immediately if you suspect fraud or theft.