Food stamp fraud explained: What it is and how to report it
SNAP, also called food stamps, is a program that helps millions of U.S. families afford groceries each month.
But just like all government programs, SNAP has rules, and breaking them is considered fraud, and can lead to serious consequences.
Whether it’s done on purpose or by mistake, state agencies take food stamp fraud seriously. Food stamp fraud can include everything from grocery stores that sell ineligible items (like alcohol) in exchange for SNAP benefits to individual people swapping their food stamps for cash.
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What counts as food stamp fraud?#what-counts-as-food-stamp-fraud
Food stamp fraud is when someone lies or breaks the rules to get SNAP benefits they aren’t supposed to receive or uses those benefits in ways that aren’t allowed.
Some common examples of food stamp fraud include:
- Lying on your SNAP application (such as not reporting income or household members)
- Selling or trading SNAP benefits for cash or non-food items
- Using someone else’s EBT card, or letting someone else outside of your household use yours
- Buying non-eligible items using SNAP benefits (like alcohol or tobacco)
- Claiming SNAP benefits in more than one state at the same time
Grocery stores can also commit food stamp fraud, usually called retailer fraud. Some examples of retailer fraud include exchanging SNAP benefits for cash or selling items that are not allowed.
Can you accidentally commit food stamp fraud?#can-you-accidentally-commit-food-stamp-fraud
Yes, sometimes people break program rules and commit food stamp fraud without meaning to. But even if it’s an honest mistake, it can still have consequences.
If you make a mistake (like if you underreport your income in your application), your state may require you to pay back benefits you weren’t supposed to get. In more serious cases, you could lose your SNAP benefits altogether or even face legal action.
Here are a few common ways people accidentally break the rules:
- Not reporting a new job or raise in income
- Forgetting to update your case when someone moves in or out of your household
- Letting a friend or family member use your EBT card
- Using SNAP at a store that doesn’t accept EBT or buying items that aren’t eligible for SNAP
To stay safe, it’s important to:
- Keep your case information up to date
- Only use your EBT card for eligible groceries at approved stores
- Report changes in your income, address, or household right away
Is EBT theft considered fraud?#is-ebt-theft-considered-fraud
EBT theft is a widespread problem, and is considered a type of food stamp fraud. Thieves often target people who receive benefits through scams like phishing messages or illegal skimmers attached to card readers.
Benefits theft can happen even if you do everything right, but it’s still important to take steps to protect yourself and keep your SNAP benefits safe.
Change your EBT card PIN every month before your deposit arrives and use a trusted app like Propel to track your balance, monitor for suspicious transactions, and lock your card.
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How to report food stamp fraud#how-to-report-food-stamp-fraud
If you think someone or a grocery retailer is committing food stamp fraud, you can report it anonymously. Each state has a way to report fraud online, by phone, or by mail.
Here’s how:
- Contact your state’s SNAP fraud hotline.
- Call the USDA Office of Inspector General at 1-800-424-9121 or 202-690-1202 (TDD)
- Report online through the USDA SNAP fraud complaint form
You can report fraud even if you’re not 100% sure something is wrong. It’s okay to share your concern and let the authorities investigate.
You don’t even have to give your name when reporting suspected food stamp fraud—you can do it anonymously.
