How keypad skimmers and phishing attacks are used to steal SNAP food benefits : Internet Scambusters #1,115
SNAP – the government’s Supplemental Nutrition Assistance Program – is meant to ease the financial burden of hungry Americans, a replacement for the old food stamps regime.
But scammers are stealing millions of dollars from these most vulnerable members of society, and some victims find they can’t even get the stolen benefits reimbursed.
In this week’s issue, we explain the two most common SNAP scams, how to protect yourself, and what to do if you fall victim.
Let's get started…
Millions Targeted In SNAP Benefits Scams
Scammers are targeting 41 million Americans who are struggling to feed themselves and their families through the federal Supplemental Nutrition Assistance Program (SNAP).
You hardly need us to tell you that grocery prices have gone through the roof in recent years and some SNAP and food stamp recipients say they can’t even stretch their benefits to meet all their needs.
But scammers don’t care about that. They want your SNAP money even if that’ll leave you starving.
So, it’s absolutely crucial to know how to spot their tricks especially since, in some cases, people can’t get their money reimbursed after they’ve been defrauded.
What is SNAP?
SNAP provides benefits to eligible, low-income individuals and families usually via an Electronic Benefits Transfer (EBT) card that can be used like a debit card to buy certain food in authorized retail food stores. The program used to be known as “food stamps.”
On average, the cards cover eligible spending of $233 a month but the actual amounts vary significantly.
The program is funded by the US Department of Agriculture (USDA), which has just reported an alarming rise in SNAP fraud since the pandemic.
Common SNAP Scams
Crooks want to know your card number and other confidential information so they can pretend to be you and either use that information themselves or sell it to others.
The main way they try to do this is either via phishing messages or through skimming devices on card readers.
One of the most common phishing attacks happens when a card holder gets a message saying their card has been locked and they have to call a scam phone number for help. There, they’re asked to provide the card details and other information.
Sometimes, fraudsters will contact SNAP users pretending to be case workers. For example, they may say they’re offering a supposedly official program that allows them to convert their benefits to cash. Or they’ll say that you’ve qualified for extra benefits. Again, they take all the victims’ details for their own use.
In addition, some retailers may fraudulently overcharge for some items, exchange benefits for cash, or sell items that aren’t actually covered by the program.
Card skimming is a common trick using hidden devices on legitimate card terminals and even cameras to copy the information you key in and transmit it to the scammers. They’re usually installed on ATMs and gas station pumps, but crooks have also been known to put them on the machines we use every day to pay for items in retail stores. More than $1 billion is stolen via skimmers every year, according to the FBI.
How to Protect Yourself
We’ve reported on this scam a couple of times: Gas Pumps Targeted in Latest Card Skimming Scam and ATM Theft: 8 Tips to Protect Yourself From the 5 Most Common ATM Scams. You’ll also find some useful advice on how to spot a skimmer here: How To Spot A Credit Card Skimmer.
If you get a message saying your card has been locked or any other suggesting there’s a problem, call your local SNAP office. Don’t phone numbers or click on links in the message.
If you’re using a payment terminal, check it carefully and don’t use it if it doesn’t seem right – for example if it looks damaged or if there seems to be some kind of overlay on the keypad. You can do this by gently tugging the edge of the keypad.
And when you’re entering your PIN number, cover the keypad with your other hand to avoid it being viewed by a secret camera.
It’s also important to:
- Check your EBT account regularly for evidence of unauthorized use.
- Change your PIN number frequently. Your state SNAP office should be able to tell you how to do this.
- Know and understand your state's policy on reimbursement of stolen funds. In the past, most states didn't refund but, since last year, they now have potential (but not guaranteed) access to federal funds.
- Don't respond to emails, text messages, and phone calls claiming to come from the SNAP program. It's highly unlikely that genuine employees would contact you this way and certainly wouldn't ask for your PIN. But, if you think it might be real, contact your SNAP office independently before disclosing any information.
- Use a recent and promising feature of the benefits program called ConnectEBT. It lets you “lock” access to your card when you’re not using it. The service is available online at www.connectebt.com or via a mobile app. You can use it any time – like immediately after using the card. It’s not available everywhere yet but likely will be in due course.
What to Do If You’ve Been SNAP Scammed
If you discover or even suspect you might have been scammed, it’s important to contact your state SNAP office immediately, report the incident, and ask for a replacement card.
If your state provides reimbursement, they’ll have their own specific rules about how to make a claim, usually including reporting the incident to police, which you should always do anyway.
Note that the reimbursement/replacement process can take a few weeks to complete, so you may need to seek temporary financial help elsewhere or use food pantries.
It’s a sad fact of life that scammers often target the most vulnerable people in our society. With SNAP fraud, they’re raking in millions of dollars every month at the expense of our poorest citizens. Don’t let any of those dollars be yours.
This Week’s Alerts
Fake Social Security agents: The US Social Security Administration says scammers are currently impersonating field agents from the Office of the Inspector General (OIG), demanding money and making in-person calls to collect the cash. The OIG doesn’t collect payments this way, so if you receive such a demand, it’s a scam.
New twist on fake jewelry scam: Crooks are always trying to palm off fake gold jewelry to gullible victims. Usually, they accost you while wandering around parking lots. But in a new twist, they stand by a luxury car, pretending it’s theirs. They claim to be a high-class jeweler and that the vehicle has broken down. But they just happen to have some valuable pieces they’ll swap for the money to get their car fixed. Ignore the glitter, both of the car and the jewelry!
That's it for today -- we hope you enjoy your week!