How to Report SNAP Fraud and Protect Your Benefits 

Updated on 06/11/2024

The Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, is a lifeline for many families. This vital program helps ensure everyone has access to nutritious food, supporting millions of Americans facing food insecurity. 

However, like any large-scale assistance program, SNAP is sometimes targeted by fraudsters looking to exploit the system for personal gain.

Fraud in the SNAP program drains valuable resources and jeopardizes its integrity, making it harder for those in genuine need to receive help. Understanding how to identify, report, and prevent food stamps fraud is essential for protecting your benefits and ensuring the program continues serving those who need it most.

What is SNAP Fraud?

SNAP fraud happens when people or businesses deliberately misuse the food stamps program. This can include selling SNAP benefits for cash, lying about income or household size to get more benefits, or businesses accepting SNAP for ineligible items. Fraud harms everyone by reducing the funds available to those who truly need assistance.

Although SNAP fraud represents a small percentage, it is still a significant issue. Here are some key statistics:

• Fraud Rate: In recent years, the SNAP fraud rate has hovered around 1% of total benefits distributed. 
• Types of Fraud: Fraudulent activities include identity theft (31%), account takeovers (25%), eligibility fraud (24%), and trafficking of benefits (20%)​​.
• Investigations: States like California and New York lead in SNAP fraud investigations, with California alone conducting nearly 451,000 investigations in a single year​​.
• Financial Impact: Every $1 of SNAP benefits lost to fraud costs agencies an additional $3.72 in detection, investigation, and administrative tasks​​.

These statistics illustrate SNAP fraud’s widespread impact on the program and its participants. By staying informed and vigilant, you can help protect your benefits and support the integrity of the SNAP program.

Identifying SNAP Fraud

Knowing what to look for can help you spot potential fraud. 

Selling Benefits for Cash

Selling SNAP benefits directly, such as offering to trade Electronic Benefit Transfer (EBT) card funds for cash, is a clear form of SNAP fraud. For example, if someone posts online offering to trade food stamps for cash, that’s illegal. 

Similarly, selling food items bought with SNAP benefits is also illegal. This practice is considered a misuse of the program, as the benefits are intended to help the recipient’s household purchase food for their own consumption, not for resale.

Misreporting Information

Misreporting information is another form of SNAP fraud where individuals provide false or misleading details on their application to receive more benefits than they are entitled to. This can include underreporting income, not disclosing all household members, or falsely claiming expenses.

Misreporting involves providing inaccurate details about your financial situation or household composition to qualify for more SNAP benefits than you are eligible for. This type of fraud undermines the program’s purpose and deprives other eligible families of the assistance they need.

Retailer Fraud

Retailer fraud occurs when stores illegally accept SNAP benefits for non-food items, give cash back for SNAP purchases, or engage in other fraudulent activities to exploit the program.

Retailer fraud involves stores accepting SNAP benefits for items not eligible under the program, such as household goods, alcohol, or tobacco. It can also include providing cash in exchange for SNAP benefits, which is strictly prohibited.

Reporting SNAP fraud

If you suspect food stamps fraud, it’s important to report it. Here’s how you can do it:

• Contact Your State Agency: Each state has a SNAP fraud hotline or website where you can report suspected fraud. You can find this information on your state’s SNAP website.
• Report Anonymously: Most states allow you to report fraud anonymously, so you don’t have to worry about revealing your identity.
• Provide Details: When reporting, provide as much information as possible. This can include names, addresses, and a description of the suspected fraud. The more details you provide, the easier it will be for investigators to look into the issue.

The Consequences of SNAP Fraud

Committing SNAP fraud has serious consequences. Here’s what can happen if someone is caught:

• Loss of Benefits: If you’re found committing fraud, you can lose your SNAP benefits, sometimes permanently. This means no more help from the program.
• Repayment: Fraudsters may have to repay the amount of benefits they received fraudulently. This can be a significant financial burden.
• Legal Penalties: In severe cases, SNAP fraud can lead to fines, community service, or even jail time. The legal system takes these offenses very seriously.

Preventing SNAP Fraud

Preventing food stamps fraud helps keep the program running smoothly and ensures benefits go to those who need them. Here are some tips:

• Guard Your Information: Never share your EBT card number or PIN with anyone. Keep your card in a safe place and report it immediately if it’s lost or stolen.
• Shop Smart: Only use your SNAP benefits for eligible food items at authorized retailers. If a store offers you cash back for using SNAP, report them.
• Be Honest: Always provide accurate information when applying for or renewing your SNAP benefits. Misreporting can lead to penalties and loss of benefits.
• Educate Yourself: Understand the SNAP program’s rules and regulations. Knowing what constitutes fraud can help you avoid unintentional mistakes and recognize when something isn’t right.

Resources for SNAP Participants

It’s important to know the rules of the SNAP program to avoid any unintentional mistakes. Here are some resources that can help you:

• Official SNAP Website: The official SNAP website is a great place to find detailed information about the program, including rules, eligibility requirements, and frequently asked questions.
• State Agencies: Each state has a SNAP agency that can answer your questions and provide assistance. Visit your state’s SNAP website or contact their office for help with your benefits.
• Community Organizations: Local community organizations often offer assistance with SNAP applications and can provide education on how to use your benefits correctly. They are a valuable resource for ensuring you understand the program fully.

By taking advantage of these resources, you can better understand how to use SNAP benefits correctly and avoid any issues.

Why It’s Important

Protecting SNAP benefits and ensuring the program’s integrity is crucial. Fraud depletes resources and jeopardizes the entire program, making it harder for honest families to receive the help they need.

If you ever suspect fraud, don’t hesitate to report it. Remember, a little effort goes a long way in keeping SNAP safe and effective for everyone. Stay informed, stay honest, and help keep the system fair for all.