According to Vibes.okdiario, The U.S. Department of Agriculture (USDA) has distributed a series of grants to various states specifically allocated for investments in fraud technology, prevention, and education. This effort is in response to the significant number of lost SNAP claims reported across the country.
SNAP benefits are delivered through Electronic Benefit Transfer (EBT) cards, which operate similarly to debit cards. Each month, funds are loaded onto these cards, allowing recipients to purchase groceries at participating stores nationwide. Unfortunately, just like regular debit or credit cards, EBT cards are vulnerable to scams, including cloning, phishing, and skimming.
Alarming Statistics Highlight Urgent Need for Security Measures
During the second quarter of 2024 alone, the USDA reported a concerning 67,496 approved stolen benefit claims, resulting in over $32 million in payments that needed to be replaced. This alarming theft underscores the urgent need for enhanced security measures.
Focus Areas of the Grants
With these grants, states can invest in:
- Fraud Technology: Developing advanced systems to detect and prevent fraudulent activities.
- Prevention Strategies: Implementing measures to protect against potential scams and frauds.
- Education: Raising awareness among recipients about risks and how to safeguard their benefits.
These efforts aim to better protect residents and ensure that SNAP benefits serve their intended purpose.
States Benefiting from the Grants
The USDA has awarded funding grants to ten states to assist their human services, health, and family departments in tackling benefit fraud. The states receiving these grants are:
- Illinois Department of Human Services
- Florida Department of Children and Families
- Kentucky Cabinet for Health and Family Services
- Maine Department of Health and Human Services
- Michigan Health and Human Services
- Minnesota Department of Human Services
- Mississippi Department of Human Services
- Montana Department of Public Health and Human Services
- Texas Health and Human Services Commission
- West Virginia Department of Human Services
In total, a substantial $4.9 million in grants has been distributed across these ten states. However, the allocation is not uniform, with each state receiving a different amount.
Funding Allocation Examples
Awarded states have the flexibility to use the funding for various purposes. For instance, in Minnesota, the funds will be utilized to implement card technology that protects benefit recipients. In Kentucky, the funds will focus on educating SNAP recipients, retailers, and local offices about fraud risks and prevention.
Other states will use their funding for initiatives such as:
- Media campaigns to raise awareness of theft tactics.
- Staff training on preventing fraud during the application stages.
Restrictions on Fund Usage
It’s important to note that these funds cannot be used to reimburse recipients who have had their benefits stolen; that responsibility falls under separate funding. Current federal law mandates that states must replace stolen benefits.
“USDA and the Biden-Harris administration remain unwavering in their dedication to strengthening SNAP, protecting vulnerable households, and combating fraud,” stated Cindy Long, deputy under secretary for USDA Food, Nutrition, and Consumer Services. “These awards are critical to providing states the resources they need to deliver program benefits in a manner that best meets the needs of the people they serve while maximizing program integrity.”
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