Millions of Americans relying on food assistance are being affected by a surge in fraud targeting SNAP benefits. A new report highlights how widespread theft of EBT funds is undermining access to basic nutrition.
The issue is drawing attention from policymakers and financial experts as losses grow and protections remain limited. The scale of the problem is raising concerns not only about financial security, but also about the stability of a program used by tens of millions each month.
The Supplemental Nutrition Assistance Program supports about 42 million Americans, or roughly one in eight people nationwide, according to data cited from the U.S. Department of Agriculture and Pew Research Center. With such broad reach, disruptions to the system can have immediate consequences for households already facing financial strain.
A recent analysis based on survey responses from more than 8,000 EBT cardholders and platform data from over 5 million users points to a rapidly expanding pattern of theft. According to reporting from Newsweek, the findings show both the scale of the losses and the impact on everyday life for recipients.
Widespread Theft Is Disrupting Access to Food for Vulnerable Households
Criminals stole more than $600 million in SNAP benefits in 2025, affecting roughly one in five recipient households, according to data from Propel cited by Newsweek. The theft typically occurs through card skimming or phishing scams, where attackers obtain card numbers and PINs before draining accounts electronically.
These incidents are often timed to coincide with benefit deposit dates, leaving recipients without funds before they can make purchases. According to the same report, nearly two-thirds of affected households lost more than $250 in a single incident, while almost one-third reported losses exceeding $500.
The consequences are immediate. Among those who experienced theft, 57 percent reported skipping or reducing meals, while 43 percent said they had to take on additional debt to cover basic needs. These figures, reported by Newsweek based on Propel’s survey, illustrate how quickly financial shocks translate into reduced food access. Jimmy Chen, CEO of Propel, stated that families relying on EBT often lack a financial buffer, meaning stolen benefits can directly result in missed meals.
Limited Protections and Outdated Systems Leave Recipients Exposed
Experts say the structure of the current system contributes to its vulnerability. According to the same source, EBT theft can occur through exposed PINs, insecure systems, or compromised terminals, with limited safeguards available to prevent unauthorized transactions.
Michael Ryan, a finance expert, told Newsweek that the system lacks modern protections such as chip-enabled cards and stronger fraud detection at payment terminals. He noted that without these measures, the system remains susceptible to organized theft.
At the same time, recipients themselves are often the primary line of defense. Alex Beene, a financial literacy instructor, said that beneficiaries tend to be highly cautious with their account information because they understand how critical the benefits are for their households, according to Newsweek.
Despite this vigilance, many surveyed recipients expressed a need for stronger protections. These include chip-enabled EBT cards and real-time monitoring systems capable of flagging or blockingsuspicious transactions before funds are lost.
Some states, including California, have begun experimenting with chip technology, though broader implementation would require coordination at both state and federal levels. According to Newsweek, experts believe expanded data protections and system upgrades could help reduce fraud as these incidents become more frequent.
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