Local elected officials in New York have raised alarms over a surge in food stamp fraud, with millions of dollars being siphoned from the nutrition benefits of residents, particularly in Queens. State Assemblymember Zohran Mamdani highlighted the issue, noting instances where individuals unwittingly fall victim to card readers that capture their personal data and drain their accounts.
According to Mamdani, in the past six months alone, over 61,000 New Yorkers have reported incidents of Electronic Benefit Transfer (EBT) fraud, resulting in a staggering $19 million in stolen funds. The problem appears to be escalating, with more than 22,000 reported cases between January 2022 and October 2023, totaling $17 million in losses.
The fraudulent activity involves the covert installation of physical devices on card readers, clandestinely capturing card information and PINs with each swipe. Mamdani emphasized the severity of the situation, labeling it a crisis within his district.
To combat this growing threat, Mamdani and fellow state Assemblymember Jessica González-Rojas have proposed legislation mandating the adoption of contactless payment technology for EBT cards. They believe such measures could significantly curtail fraud, potentially by over 87%.
EBT serves as an electronic substitute for traditional food stamps, enabling recipients to utilize Supplemental Nutrition Assistance Program benefits for food purchases. However, the susceptibility of the system to exploitation poses a dire challenge for vulnerable individuals and families. Shiva Pradhan, a retiree relying on food stamps, recounted a recent incident where her benefits were compromised during a routine grocery trip, leaving her embarrassed and financially strained.
While efforts to rectify such situations exist through benefit replacement programs, the process is marred by bureaucratic hurdles and delays. Mamdani’s office has facilitated connections to these programs for affected constituents, but the reimbursement process is sluggish, exacerbating hardships for those already struggling to make ends meet.
Mamdani condemned the toll such delays take on individuals, emphasizing the plight of working-class New Yorkers. He urged affected residents to promptly file claims through the Department of Social Services to seek restitution for stolen EBT funds.
