Reducing theft of SNAP benefits: A smarter path to prevention

July 16, 2025

Jamie Topolski

How EMV technology, layered online security, and coordinated modernization can protect government benefits

Electronic Benefit Transfer (EBT) theft is rising at an alarming rate, jeopardizing the integrity of the Supplemental Nutrition Assistance Program (SNAP) and the well-being of millions of families who rely on it. In 2024 alone, states were forced to replace more than $190 million in stolen benefits, in reality a figure that is likely a fraction of the actual loss due to underreporting.

The problem isn’t just growing, it’s evolving. Criminals are exploiting outdated technology and finding new ways to siphon off benefits before families can use them. Government agencies need proactive, tech-enabled tools to stay ahead of these threats.

Understanding the growing threat of SNAP fraud
The theft of SNAP benefits has grown exponentially in recent years, driven in large part by the vulnerability of legacy systems and magnetic stripe EBT cards. Yet many victims never report the theft, which means the true scope of fraud is likely much greater.

The most common attack method is card cloning, made possible by skimmers that capture data from traditional magnetic stripe cards. Once cloned, these cards are used to rapidly deplete accounts, often outpacing any attempt to stop the theft in real time.

Fraudsters are also increasingly targeting online transactions, exploiting weak verification methods. As more retailers accept online SNAP purchases, this vector will only grow unless additional safeguards are implemented.

Preventing fraud in EBT payments requires understanding how bad actors operate and building infrastructure that stops them in their tracks.

Why EMV chip technology is essential
EMV (Europay, Mastercard, Visa) chip technology has revolutionized card security in the private sector, reducing card-present fraud by making cards almost impossible to clone. It’s time for government EBT systems to benefit from the same level of protection.

According to one report from Visa, counterfeit fraud dropped by 87% once 70% of cards were chip-enabled. These chips generate unique transaction codes for every use, rendering stolen data useless for duplication or resale. Magnetic stripe cards, by contrast, store static data that can be easily copied.

The benefits of EMV adoption are clear. But for the technology to work, it must be deployed widely across all states and participating merchants. Without full adoption, fraud will simply migrate to less protected locations.

Conduent’s experts work closely with agencies to recommend practical, proven steps for reducing fraud, including:

Mandate EMV chip use in all EBT cards
Fund the reissuance of cards at scale
Set clear, achievable timelines for rollout
Mandate support for EMV chips in EBT cards by retailers
Train retailers and agency staff on new procedures

States including California and Oklahoma are already demonstrating what’s possible through leadership and collaboration.

Combatting online SNAP fraud with additional security layers
While online transactions still represent a small percentage of SNAP usage, they account for a disproportionately high share of EBT fraud. That’s because EMV chips protect in-person transactions, but not online ones. Preventing online theft requires new tools and rules.

One simple but powerful solution is the implementation of 3-digit security codes, already standard in private-sector e-commerce, to verify cardholder identity when shopping online. When criminals steal magnetic stripe data from cards and transactions, they cannot get the security code unless they steal the physical card. Another is giving cardholders the ability to lock or unlock their card for purchases. These tools help block unauthorized use and limit the opportunities for fraud.

Together, these added layers can help close the gap left by EMV’s limitations, making online SNAP transactions more secure without compromising usability.

A coordinated path forward: technology, standards, and policy
No single tool will eliminate EBT fraud. The solution lies in a coordinated modernization effort across agencies, retailers and technology providers. That includes embracing updated standards, adopting proven solutions, and empowering stakeholders at every level.

Conduent is proud to lead the charge through the Accredited Standards Committee X9. These standards will enable EMV transactions, support enhanced cardholder controls, and allow for better fraud detection.

States and their technology partners must:

Align policy and technical requirements
Upgrade point-of-sale infrastructure
Educate merchants and program administrators

Conduent offers the end-to-end support to make this possible from strategy through execution.

SNAP benefits are a vital safety net, and every dollar stolen is a dollar families can't spend on food. The time to act is now. EMV chip adoption, online security enhancements and coordinated modernization efforts can dramatically reduce fraud and restore confidence in EBT systems.

Conduent’s VeriSight Anti-Fraud Solutions are designed to help agencies move quickly and strategically. Contact us to explore how we can help protect your program.

FAQs

What are the main causes of SNAP benefits theft, and how can they be prevented?
Theft often stems from cloned magnetic stripe cards and weak online protections. Prevention requires EMV chips, security codes, and better cardholder controls.

How does EMV chip technology help in reducing EBT card fraud?
EMV chips create unique codes for each point-of-sale transaction, making it virtually impossible to duplicate or reuse stolen card data.

What additional security measures can be implemented to combat online SNAP fraud?
Adding security code verification and enabling users to lock or unlock transactions can block unauthorized use and reduce fraud.

Why is the adoption of EMV chip cards crucial for preventing SNAP fraud across states?
Without full adoption, fraud simply shifts to unprotected areas. A nationwide rollout ensures consistent, system-wide protection.