squatting dog
Remember when... thirty seemed so old.
- Location
- Arkansas, and also Florida
While 98%+ of SNAP is used correctly, misuse does happen—mostly small-scale, but some large scams.
Examples................
Casinos, strip clubs, liquor stores
Some states saw EBT use at ATMs inside these venues...
Cruise ships, bail bonds, tattoos... Rare but documented (e.g., Louisiana 2015 audit).
(Federal law (2019): States must block EBT at casinos, liquor stores, etc. Most now do).
Cash-Out" Schemes (Trafficking)Cardholder sells benefits for cash (e.g., 50¢ on the dollar).
Example: Person swipes EBT for $100 at a corrupt store, gets $50 cash back. Store keeps $50 profit.
Scale: USDA estimates $1–2 billion annually lost to trafficking.
(2024 Florida sting: 22 stores charged; one owner bought $1.3M in SNAP for $600K cash).
Fake Applications / Identity TheftUsing stolen SSNs to apply for SNAP.
Ghost accounts in deceased people’s names.Texas 2024: 15 people indicted for $400K in fraudulent SNAP claims.
Store Owner FraudOvercharging: Ring up $100 in fake groceries, give $60 cash.
Phantom transactions: Swipe card when no sale occurs.
(California 2022: 7-Eleven franchisee sentenced to 3 years for $2.5M fraud).
Examples................
Casinos, strip clubs, liquor stores
Some states saw EBT use at ATMs inside these venues...
Cruise ships, bail bonds, tattoos... Rare but documented (e.g., Louisiana 2015 audit).
(Federal law (2019): States must block EBT at casinos, liquor stores, etc. Most now do).
Cash-Out" Schemes (Trafficking)Cardholder sells benefits for cash (e.g., 50¢ on the dollar).
Example: Person swipes EBT for $100 at a corrupt store, gets $50 cash back. Store keeps $50 profit.
Scale: USDA estimates $1–2 billion annually lost to trafficking.
(2024 Florida sting: 22 stores charged; one owner bought $1.3M in SNAP for $600K cash).
Fake Applications / Identity TheftUsing stolen SSNs to apply for SNAP.
Ghost accounts in deceased people’s names.Texas 2024: 15 people indicted for $400K in fraudulent SNAP claims.
Store Owner FraudOvercharging: Ring up $100 in fake groceries, give $60 cash.
Phantom transactions: Swipe card when no sale occurs.
(California 2022: 7-Eleven franchisee sentenced to 3 years for $2.5M fraud).
