In the Bensonhurst Chinese community in Brooklyn, New York, cases of food stamp fraud have seen a sharp increase since September 1st. Ada Wong, Deputy Chief of Staff at Councilwoman Wenyi Zhu’s office, revealed that they have already handled over twenty related complaints from the beginning of September until now. Despite the federal government’s implementation of the “Protect My Account” program, which offers options such as prohibiting out-of-state transactions and online shopping to prevent theft, many elderly people are not able to effectively protect themselves as they are unfamiliar with how to operate these measures.
Wong pointed out that based on the consumption statements of the Electronic Benefit Transfer (EBT) food stamp assistance program (SNAP) and cash assistance, many funds are being fraudulently used for out-of-state or online purchases shortly after being deposited, with some cases involving amounts as high as $600. She cited an example where a victim’s account showed a deposit of $297 in food stamp funds on September 6th at midnight, but within just 5 hours, the entire amount was stolen.
She suspects that the database of the New York City Human Resources Administration (HRA) may have been compromised, allowing thieves to access user data and accurately know the timing of fund deposits. “Thieves know that users will receive money today, and then in the early morning before the user wakes up, at 7 a.m., all the money in the account is stolen, or in one case, all the money was spent at 3 a.m. The most ridiculous case was within four minutes after the deposit, hundreds of dollars were stolen,” said Wong while reviewing consumption statements on the computer.
How do thieves manage to scam an account within 4 minutes of a deposit? Wong analyzed that this type of criminal activity is likely carried out by individuals with programming knowledge. Thieves could set up programs to automatically monitor the flow of funds in user accounts and initiate fraud as soon as funds are deposited. They then utilize these funds for online shopping at major retailers in other states, eliminating the need to physically withdraw cash from banks. Additionally, according to statements, some fraudulent activities took place at Deli grocery stores in the Bronx area of New York City.
She also mentioned that even her relatives recently fell victim to food stamp fraud. Despite usually only shopping at a few designated supermarkets without any issues, they discovered that the money in their Electronic Benefit Transfer card (EBT) had vanished when they went to buy mooncakes at the supermarket. The source of the data leak remains unknown.
To report fraudulent activities online, Wong independently researched the official website of EBT and found that the “Protect My Account” feature allows users to block online transactions and out-of-state transactions, but users need to actively set it up. She noted that many people are unaware of this feature or do not know how to enable it.
The specific steps are: visit www.ebtedge.com, log in to the “Cardholder Portal,” select “Protect My Account,” set both the “Block Internet Transactions” and “Block Out of State Transactions” options to “On,” and then save.
Furthermore, in accordance with the “Consolidated Appropriations Act of 2023” passed in 2023, states are currently able to use federal funds to compensate victims of food stamp theft. However, as the 2024 fiscal year is coming to a close at the end of September, states will no longer have federal funds available for such compensation. Therefore, she urges community residents to take preventive measures as soon as possible and seek assistance from their local councilor’s office if needed.