$360 Million Stolen: New Bill Targets Rampant SNAP Card Skimming

Private-sector banks upgraded debit and credit cards from magnetic strips to an embedded chip in 2015, but most states still haven’t upgraded their cards, and criminals have stolen hundreds of millions of dollars because of that lax security, according to the U.S. Department of Agriculture.

Criminals have stolen over $360 million worth of SNAP benefits meant to feed hungry families from fiscal year 2023 to 2025. 

Criminals install card skimmers on point-of-sale machines at high-trafficked areas such as gas stations, grocery stores, and liquor stores. The criminals use fake card readers to steal data and clone the cards. For example, one USDA employee and five others were charged in 2025. They were accused of stealing $66 million in SNAP benefits. 

The program is projected to worsen, according to a January report from the USDA’s Inspector General, which projects potential fraud and replacement benefits totaling about $555 million without security upgrades.

Several states have or are upgrading their SNAP cards, including Alabama, Arkansas, California, Massachusetts, Maryland, Michigan, New Jersey, and Oklahoma. But low-income families in dozens of other states are still vulnerable to criminals stealing their benefits. 

The Enhanced Cybersecurity for SNAP Act effectively addresses fraud by directing USDA to update its cybersecurity regulations to ensure criminals cannot easily steal SNAP benefits. This bill will require:

• USDA to issue updated regulations requiring SNAP cards to feature anti-fraud technology capable of resisting cloning, as well as securing online SNAP transactions. These regulations will be updated every five years and must keep pace with the security of credit and debit cards.
• With USDA funding, states will begin issuing chip-enabled SNAP cards within two years of the adoption of the new regulations. Within four years, states will no longer be able to issue new SNAP cards containing a magnetic stripe. Within five years, states will have to reissue all existing SNAP cards containing a magnetic stripe as chip-only cards.
• USDA to operate a grant program providing funds for upgraded chip-capable payment machines to small grocery stores in food deserts, farmers’ markets, and farm-to-consumer programs.
• States to provide families with no-fee replacements of SNAP cards in three days or less, if their card is stolen, cloned by fraudsters, or malfunctions.
• States to offer multiple accessible and reliable user interfaces, such as a smartphone app or voice telephone service, for families to manage their EBT account.

The bill would boost program security and reduce fraud, the bill sponsors said. 

“SNAP is a critical lifeline for nearly 2 million Pennsylvanians,” Fetterman said in a statement. “We should be delivering help to those who need it, and that includes protecting them from criminals. I’m proud to join my colleagues in reintroducing this bill to protect our most vulnerable and the food assistance they depend on.”

The bill is endorsed by: Feeding PA, the National Grocers Association, Food Marketing Institute, National Association of Convenience Stores, SNAC International, Food Research and Action Center, Hunger Free America, R Street, American Heart Association, Bread for the World, Share Our Strength, Today’s Students Coalition, California Welfare Fraud Investigators Association, City Harvest, Rethink Food, and National Taxpayers Union.

“SNAP benefits are a lifeline for thousands of families across the Hudson Valley, and we have a responsibility to ensure those benefits are protected from fraud and theft. By modernizing EBT cards with secure chip technology, the SNAP system will be brought up to the same security standards Americans expect from their banks. Protecting these benefits means protecting working families, seniors, and small businesses who rely on them every day,” Lawler said in a statement.  

Private-sector banks upgraded debit and credit cards from magnetic strips to an embedded chip in 2015, but most states still haven’t upgraded their cards, and criminals have stolen hundreds of millions of dollars because of that lax security, according to the U.S. Department of Agriculture.

Criminals have stolen over $360 million worth of SNAP benefits meant to feed hungry families from fiscal year 2023 to 2025. 

Criminals install card skimmers on point-of-sale machines at high-trafficked areas such as gas stations, grocery stores, and liquor stores. The criminals use fake card readers to steal data and clone the cards. For example, one USDA employee and five others were charged in 2025. They were accused of stealing $66 million in SNAP benefits. 

The program is projected to worsen, according to a January report from the USDA’s Inspector General, which projects potential fraud and replacement benefits totaling about $555 million without security upgrades.

Several states have or are upgrading their SNAP cards, including Alabama, Arkansas, California, Massachusetts, Maryland, Michigan, New Jersey, and Oklahoma. But low-income families in dozens of other states are still vulnerable to criminals stealing their benefits. 

The Enhanced Cybersecurity for SNAP Act effectively addresses fraud by directing USDA to update its cybersecurity regulations to ensure criminals cannot easily steal SNAP benefits. This bill will require:

• USDA to issue updated regulations requiring SNAP cards to feature anti-fraud technology capable of resisting cloning, as well as securing online SNAP transactions. These regulations will be updated every five years and must keep pace with the security of credit and debit cards.
• With USDA funding, states will begin issuing chip-enabled SNAP cards within two years of the adoption of the new regulations. Within four years, states will no longer be able to issue new SNAP cards containing a magnetic stripe. Within five years, states will have to reissue all existing SNAP cards containing a magnetic stripe as chip-only cards.
• USDA to operate a grant program providing funds for upgraded chip-capable payment machines to small grocery stores in food deserts, farmers’ markets, and farm-to-consumer programs.
• States to provide families with no-fee replacements of SNAP cards in three days or less, if their card is stolen, cloned by fraudsters, or malfunctions.
• States to offer multiple accessible and reliable user interfaces, such as a smartphone app or voice telephone service, for families to manage their EBT account.

The bill would boost program security and reduce fraud, the bill sponsors said. 

“SNAP is a critical lifeline for nearly 2 million Pennsylvanians,” Fetterman said in a statement. “We should be delivering help to those who need it, and that includes protecting them from criminals. I’m proud to join my colleagues in reintroducing this bill to protect our most vulnerable and the food assistance they depend on.”

The bill is endorsed by: Feeding PA, the National Grocers Association, Food Marketing Institute, National Association of Convenience Stores, SNAC International, Food Research and Action Center, Hunger Free America, R Street, American Heart Association, Bread for the World, Share Our Strength, Today’s Students Coalition, California Welfare Fraud Investigators Association, City Harvest, Rethink Food, and National Taxpayers Union.

“SNAP benefits are a lifeline for thousands of families across the Hudson Valley, and we have a responsibility to ensure those benefits are protected from fraud and theft. By modernizing EBT cards with secure chip technology, the SNAP system will be brought up to the same security standards Americans expect from their banks. Protecting these benefits means protecting working families, seniors, and small businesses who rely on them every day,” Lawler said in a statement.