On July 22, 2024, Congressman Josh Gottheimer, New Jersey Senate President Nicholas Scutari, and Senator Brian Stack introduced new federal legislation aimed at addressing fraud within the Supplemental Nutrition Assistance Program (SNAP). The proposed Stop Scammers, Card Abuse, and Malicious Skimming Act, or Stop SCAMS Act, comes in response to nearly 177,000 reports of SNAP fraud in the first quarter of 2024, across 46 states, according to the U.S. Department of Agriculture’s Food and Nutrition Service (FNS).
If passed, the Stop SCAMS Act will mandate states to educate SNAP recipients about the risks of card skimming and other fraudulent activities, and to address security concerns related to Electronic Benefit Transfer (EBT) cards. One key issue is the lack of embedded chips in these cards, a vulnerability that has been highlighted by lawmakers in various states.
The legislation will also require the Agriculture Secretary to develop cybersecurity and digital regulations to address EBT’s technological weaknesses. It will call for all 50 states to transition to more secure chip-enabled cards within five years.
EBT cards function similarly to debit cards, being loaded with monthly benefits for use in participating stores. Like traditional debit and credit cards, EBT cards are susceptible to scams such as cloning, phishing, and skimming.
In New Jersey alone, $913,225 in SNAP benefits were reported stolen in the first quarter of 2024, with $774,765 reimbursed to victims through successful claims.
The Stop SCAMS Act is based on state bill S2873, which was referred to the New Jersey Senate’s health committee in April 2024.
During the press conference, Congressman Gottheimer criticized the perpetrators of SNAP fraud, saying, “It’s heartless scam artists and fraudsters who are willing to exploit hungry children and families just to make a buck for themselves. At the end of the day, food security shouldn’t be a partisan issue because hunger doesn’t discriminate.”
Senator Scutari echoed these sentiments, noting, “What we see here is a continuing fraudulent practice at the federal benefits level. With the rise of digital transactions, we need to ensure that we are more vigilant at the governmental level.”
Senator Stack added, “Hopefully, this legislation introduced by Congressman Gottheimer will provide substantial benefits not only to New Jersey residents but to people across the country.”
The issue of EBT card scams is widespread, with other states also taking action. In New York, where instances of fraud are the highest nationwide, proposed legislation seeks to automatically cancel compromised EBT cards and classify SNAP theft as a class D felony.