Thieves are stealing millions of dollars of New Yorkers' cash benefits

Food stamp scammers are stealing millions of dollars of New Yorkers’ nutrition benefits, according to local elected officials.

The fraud happens when people with Electronic Benefit Transfer cards unknowingly use card readers that steal their personal information and drain their accounts, said state Assemblymember Zohran Mamdani, who represents parts of Queens.

In the last six months, more than 61,000 New Yorkers have submitted a claim of EBT fraud, a spokesperson for the city’s Department of Social Services said. The agency has helped recover over $19 million of those stolen funds.

“It’s a crisis in our district,” Mamdani said.

The issue has gotten worse: New Yorkers submitted more than 22,000 claims of EBT fraud between January 2022 and October 2023, totaling $17 million in stolen benefits, according to the assemblymember. Mamdani said he has helped more than 20 constituents recover more than $15,000 in stolen benefits in the last six months, adding there are many other residents who haven’t sought help.

Mamdani also said thieves are secretly installing a physical device on card readers to steal people’s information and money. Whenever a card is swiped through the reader, the device copies the card’s information and pin number.

To address the problem, state Assemblymember Jessica González-Rojas Queens introduced legislation requiring EBT cards to be upgraded with contactless payment technology. That bill, which has yet to be voted on, could decrease fraud by over 87%, Mamdani said.

EBT is an electronic system that functions like a regular debit card and allows people to pay for food using Supplemental Nutrition Assistance Program benefits. To qualify for SNAP through the state, a family of four must make less than $39,000 a year. The maximum annual income for a single person to qualify is $18,960.

The NYPD did not respond to an inquiry about how scammers commit EBT theft.

Shiva Pradhan, 65, was a victim of EBT skimming at his local grocery store in Woodside last month. Before visiting the store, Pradhan said he checked his balance and saw his $291 monthly payment. But after filling his basket with bread, eggs and potatoes for the week, he said his card was declined at the register.

“It was so embarrassing,” he said. “I’m not rich, I survive on food stamps.”

Pradhan had been receiving the benefits since he retired last year from his job at a Brooklyn nonprofit that helps families facing eviction avoid homelessness.

After the store clerk told Pradhan his card had a $0 balance, he said he called the social services department: “I called, I called, I called, nobody picked up."

Eventually, he asked a friend to lend him some money while he waited for a new EBT card to arrive in the mail. Pradhan said an EBT customer service representative told him that his information was used for a purchase in the Bronx, where he rarely visits.

Assemblymember Mamdani said his constituents in Astoria have also reported swiping their EBT cards at grocery stores, only to find there were no funds left in their accounts.

“It is a recipe for our constituents being forced to starve,” he said.

His office has connected victims of EBT skimming with the city’s benefit replacement program through the Department of Social Services. But the program will only refund up to two months' worth of stolen funds and it usually takes 30 days for people to get their funds reimbursed, according to his office.

That wait is long enough that people “will have trouble putting food on the table,” Mamdani said. “This is just one instance of a long legacy of the state seeking to put restrictions and bureaucratic difficulties upon the backs of working-class New Yorkers," he added.

To get reimbursed for stolen EBT funds, residents must file claims online with the Department of Social Services, or call 718-557-1399.

This story has been updated.