Five states are deploying new card technologies to counter SNAP fraud, while the expiration of federal benefit replacement authority leaves recipients exposed to losses and shifts greater responsibility onto state prevention systems.
Story Snapshot
- Five states are deploying advanced EBT security measures to combat escalating SNAP fraud.
- Federal authority to replace stolen SNAP benefits expired in December 2024, shifting focus to prevention.
- USDA announced $5 million for states to implement the SNAP Fraud Framework in July 2025.
- States adopt card freezing, analytics, and education, but SNAP recipients now face unreimbursed losses from theft.
States Respond to SNAP Fraud with New Security Measures
In 2025, five U.S. states launched initiatives to strengthen security in the Supplemental Nutrition Assistance Program (SNAP), a $100 billion program, targeting vulnerabilities exploited through card skimming and phishing schemes. These states are rolling out advanced electronic benefit transfer (EBT) card technologies, including freezing functionality and enhanced analytics, in response to a surge in electronic theft such as card skimming and phishing schemes. The federal government, via the USDA, has backed these efforts with $5 million in competitive grants to support the adoption of the SNAP Fraud Framework and modernize state-level defenses.
The urgency stems from the December 2024 expiration of Congress’ temporary authority to replace stolen SNAP benefits. Previously, victims of electronic fraud could be reimbursed, but now, recipients who lose benefits to digital thieves have no recourse for recovery. This policy shift is intended to force faster deployment of anti-fraud tools and recipient education, but it also leaves millions at risk until states’ new systems are fully in place. State agencies are issuing alerts on protecting EBT cards and rapidly piloting new security features, yet implementation varies widely, with some regions lagging behind due to resource constraints.
Federal-State Collaboration and the Challenge of Prevention
The USDA’s Food and Nutrition Service (FNS) oversees SNAP but relies on state agencies for day-to-day administration and fraud prevention. The new grants incentivize innovation—states are encouraged to update EBT systems, launch mobile apps for card control, and invest in data analytics to flag suspicious transactions. Technology vendors are developing secure, user-friendly solutions, while state officials emphasize the need to balance fraud prevention with maintaining access for eligible families. The shift from post-theft reimbursement to proactive prevention marks a major policy pivot, raising the stakes for both state administrators and recipients.
Some states are going further by updating purchase eligibility rules and implementing stricter verification. Iowa, for example, will introduce revised SNAP eligibility standards in January 2026. Such measures are politically contentious, with advocates warning that aggressive anti-fraud protocols could stigmatize recipients or inadvertently deny benefits to those in need. Yet, with electronic theft draining taxpayer dollars and undermining program integrity, lawmakers argue that robust prevention is essential to sustain public trust and safeguard resources for the truly eligible.
Impacts on Recipients, Agencies, and Taxpayers
For SNAP recipients, particularly in high-fraud areas or those with limited digital literacy, the new security systems may provide added protection but also introduce challenges, according to the Center on Budget and Policy Priorities. Those who fall victim to benefit theft after December 2024 can no longer count on reimbursements, increasing the urgency for personal vigilance and technological adoption. State agencies are under pressure to implement analytics, launch educational campaigns, and field a growing volume of fraud reports—all while managing resource and technology constraints. Retailers participating in SNAP must adapt to evolving card systems and transaction protocols, facing potential disruptions as states transition to safer cards.
Economically, reduced fraud is expected to save taxpayer dollars and preserve SNAP’s core mission, but the risk of increased administrative burden and recipient confusion remains. Politically, these reforms may reignite debates over SNAP funding, eligibility, and government accountability. Experts, including Elaine Waxman of the Urban Institute, emphasize the importance of balancing security with equitable access, warning that overly strict measures could discourage legitimate participation. The experience of these five states is likely to set a precedent for federal-state collaboration on benefit security, influencing not only SNAP but other public assistance programs as well.
Expert Analysis and Future Outlook
Policy and industry experts point to technological innovations such as real-time transaction alerts and advanced data analytics as central tools for curbing SNAP fraud. Academic and policy analysts, including those at the Harvard Kennedy School, note that the main challenge is preventing fraud while ensuring that vulnerable populations retain access to benefits. The expiration of federal benefit replacement authority puts the spotlight on prevention, placing responsibility squarely on state governments and technology vendors. As these reforms take hold, ongoing evaluation will be critical to ensure that security enhancements do not come at the cost of excluding those in genuine need. The broader national initiative, combining education, analytics, and federal-state partnership, may become a model for defending other critical social programs against fraud and abuse.
Sources:
USDA SNAP Fraud Framework Implementation Grant (FFIG) FY 2025
USDA SNAP Fraud Framework: Grant Information
Iowa Department of Health and Human Services: SNAP Food Assistance
New York State Office of Temporary and Disability Assistance: EBT Scam Alert
Georgia Division of Family & Children Services: Federal Stolen SNAP Replacement Program