Food stamp fraud is ‘devastating’ Michiganders, document says
https://www.michigancapitolconfidential.com/news/food-stamp-fraud-is-devastating-michiganders-document-says
When Michiganders’ food stamps are stolen, it can take six to eight weeks for the state to replace the card, according to a fraud expert.
The Michigan Department of Health and Human Services administers the federal Supplemental Nutrition Assistance Program, which helps feed the state’s most vulnerable people — about 800,000 households.
The dollar amount of reported food stamp fraud increased from fiscal year 2023 to 2024 by 387%, according to documents Michigan Capitol Confidential obtained through a records request. Criminals steal food stamps from Michiganders via card skimmers and card cloning.
Criminals can install fake versions of card readers that process payment cards, such as debit and credit cards, at gas stations, grocery stores and liquor stores. A project proposal from the state health department describes the situation and suggests making benefit cards more secure.
“This project (to switch to chipped debit cards) is expected to realize significant advancements in both improved program integrity as well as benefit delivery modernization,” the proposal says.