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A Simple Fix Could Stop Millions in Food Stamp Theft. Will New York Commit?

Chip technology has been standard in credit and debit cards for a decade. It could stop New York’s surging rate of stolen benefits.

Jie Jenny Zou · February 11, 2025

A New York state benefits card with a cut-out yellow outline where a digital chip would go. In the background, a black and white photo of produce in a grocery store.

Upgrading magnetic-strip benefit cards with encrypted chip technology that has been standard in US credit and debit cards since 2015 could significantly curb SNAP fraud, reducing the need for refunds. | Photo: Bill Oxford / Getty | Illustration: Leor Stylar

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Tens of thousands of New Yorkers who rely on food assistance have filled up their shopping carts only to find their benefits drained at checkouts.

The Supplemental Nutrition Assistance Program — formerly known as food stamps — has been a lifeline for needy New Yorkers at a time of increasing food insecurity. But it has also become a target for thieves, who use hidden skimming devices on card readers to steal millions in benefits.

Making matters worse, recipients no longer have access to refunds.

Reimbursements were halted after budget negotiations in Congress unexpectedly broke down amid criticism from Elon Musk, the world’s richest man turned Trump advisor. (New Yorkers can still apply for refunds of benefits stolen before Dec. 20, 2024.)

For years, New York has been a hotbed for SNAP theft. While New Yorkers make up seven percent of SNAP users nationwide, they account for nearly 18 percent — roughly $40 million since 2022 — of reimbursements paid by the federal agency that oversees the program, the US Department of Agriculture.

The reimbursements likely don’t reflect the full scale of theft. Not all SNAP recipients notice missing funds or know how to file a claim.

Photograph of a green sign saying "Social Service Administration"

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A simple fix — upgrading magnetic-strip benefit cards with encrypted chip technology that has been standard in US credit and debit cards since 2015 — could significantly curb fraud, reducing the need for refunds. But congressional attempts to mandate a national switch have stalled, and it’s unclear whether such a measure would pass under a Trump administration that is likely to target SNAP for a massive overhaul.

Several states are moving forward on their own. Both California and Oklahoma plan to roll out chip cards later this year, after encountering numerous delays. Maryland recently approved a contract to switch over to chip cards, and Massachusetts hopes to make the switch either later this year or early next. Massachusetts and Oklahoma are also taking part in a USDA pilot program along with Illinois, Louisiana, and Missouri to test out contactless mobile SNAP payments like tap to pay.

Meanwhile, early efforts to modernize SNAP in New York haven’t gotten much traction.

Assemblymember Jessica González-Rojas and Senate Social Services Committee Chair Roxanne Persaud have proposed legislation requiring the state to switch to chip-enabled cards since 2023.

“The burden has been on families to catch this themselves,” said González-Rojas, whose district spans some of Queens’s most diverse, multilingual communities, like Jackson Heights. Her staff has been helping constituents request refunds using an online form the city only makes available in English.

With a new Republican-led Congress that has pledged to slash welfare spending, González-Rojas is skeptical any help will come from Washington. “It’s going to be incumbent upon the states of this country to really protect their residents.”

New York’s Office of Temporary and Disability Assistance oversees the state’s SNAP program, which reached nearly 3 million New Yorkers last year and distributed $376 in monthly benefits to the average household. The agency did not respond to questions about whether it was moving forward with chip cards. Agency officials told a news station in July that it was in the “early stages” of the transition, but it has not released a timeline or made any formal announcements.

Instead, an OTDA spokesperson pointed New York Focus to a press release last February from Governor Kathy Hochul’s office directing SNAP recipients to a mobile app to lock their benefit cards when not in use. Other states like Georgia have also adopted the lock feature in an attempt to staunch theft. OTDA did not provide figures of how many New Yorkers are actively locking their cards.

The federal government has been slow to take broad action, instead encouraging states to adopt chip cards using technical guidance it released last summer.

“It’s going to be incumbent upon the states of this country to really protect their residents.”

—Assemblymember Jessica González-Rojas

Advocacy groups like the Legal Aid Society have been urging stronger SNAP safeguards for years, too.

“It really seems like a failure of will,” said Ed Josephson, supervising attorney at Legal Aid. He pointed out that while New York isn’t on the hook for stolen SNAP benefits, it is required to replace any cash assistance that is stored on the same skimmed cards. “They’re actually shooting themselves in the foot by not doing this.”

Upgrading is a hassle. States split the costs of administering SNAP evenly with the federal government, and also have to navigate a technical bureaucracy that includes numerous stakeholders and private retailers whose transaction systems may be unable to handle new cards.

But proponents say the technology will pay for itself. California budgeted $50 million for chip cards, a fraction of the rampant fraud in SNAP and cash aid.

Law enforcement has tied skimming in California to organized crime rings. Tech experts and policymakers are concerned that laggard states like New York could wind up becoming even bigger skimming targets once California completes its repeatedly delayed move to more secure cards.

Another New York state agency has already embraced chips. The Department of Labor transitioned to chip-enabled debit cards for unemployment benefits in 2023.

Meanwhile, some New York federal lawmakers are hopeful that SNAP reimbursements can be restored in upcoming budget talks in March.

“There’s good bipartisan appeal to this,” said Quinn Usry, press secretary for US House Representative Dan Goldman. “You’re not getting your funds stolen through any fault of your own.”

Advocates say the reimbursement program is far from a complete fix.

How to secure your SNAP benefits:

• Freeze your EBT card when not in use using the ebtEDGE mobile app.

• Change your PIN frequently. You can change your PIN at local departments of social services offices, Benefit Access Centers, or by calling 888-328-6399 or visiting www.ebtEDGE.com.

• Monitor your EBT account regularly for any suspicious activity.

• Protect your PIN by covering the keypad when you enter it at checkout.

• Be on the lookout for skimming devices.

Legal Aid is suing the USDA for what it calls “arbitrary and capricious” limits on SNAP reimbursements. Under federal rules, refunds are only available for benefits stolen between Oct. 1, 2022 and Dec. 20, 2024 — even though thousands had their benefits skimmed before 2022 and continue to experience theft.

Getting a refund also requires recipients to jump through several hurdles. New Yorkers must contact their county social service provider within 30 days of noticing the theft and report their cards as stolen, rendering cards void until replacements are mailed out.

It can then take the state up to 30 days to process the claim and refund the stolen benefits. Of the over 118,000 claims in New York, nearly 27,000 were deemed “invalid” and nearly 6,000 were rejected for being “untimely.”

Over 600 claims were also denied because recipients had reached a two-replacement max.

Regardless of how much was stolen, SNAP recipients can only request refunds up to twice a year and receive a maximum of two months’ worth of benefits.