New plan to combat EBT card fraud

The Board of Supervisors this week asked its Department of Public Social Services to prepare a report detailing its preparation for the state implementation of Electronic Benefits Transfer
chip/tap cards, including the development of a public outreach campaign to inform residents of the switch.
EBT cards are used by residents to access public assistance benefits, such as CalFresh or SNAP benefits, California Food Assistance Program and cash. But the cards have been increasingly targeted by scammers using skimming technology, stealing millions of dollars in benefits.
According to a motion by Supervisors Hilda Solis and Janice Hahn, skimming thefts increased from $951,511 in 2021 to $63.1 million in 2023. Between January and April this year, more than $20.8 million has been taken.
To combat such theft, the state Department of Social Services announced earlier this year that it will begin issuing EBT cards with chip/tap technology and boost security for residents who depend on the services. The transition from old cards to new technology is expected to be implemented by the end of summer, a move Solis called a “creative solution to tackle the
continuing criminal enterprise involving skimming devices.”
Solis stressed the need for new technology, noting that EBT-related fraud has continued to grow despite previous intervention efforts by the county, including a recent measure “directing the DPSS to provide nearly $1.1 million dollars in the fiscal year 2024-2025 to the District Attorney’s Office to increase enforcement.”
The report requested by the board is expected to be presented in 45 days, addressing specifics on transition to new cards, tracking down current beneficiaries, an outreach plan for education, and reaching unhoused individuals.
The U.S. Department of Agriculture’s Food and Nutrition Service issued flyers earlier this year detailing the transition in the states of California and Oklahoma — the first states to implement it.
The state Department of Social Services last year set up ebtEDGE, a mobile application and web-based portal that provides cardholders with card management features to help protect against theft. Through ebtEDGE, users can change PINs, freeze their card when it is not in use, block online and out-of-state transactions, and request a replacement card. The mobile application also offered features utilizing device biometrics, including touch ID or facial
recognition to sign in.
The motion approved by the Board of Supervisors Tuesday asks that a countywide, multi-lingual public awareness campaign be prepared to educate both consumers and vendors about the new cards.