Security Expert: Use Artificial Intelligence to Fight Benefits Fraud

Nationwide, electronic benefits transfer fraud is estimated to cost taxpayers up to $4.7 billion annually, according to the Government Accountability Office.

In 2022, the Supplemental Nutrition Assistance Program distributed over $113.7 billion to nearly 22 million households.

The federal government entrusts states to reduce fraud in safety net programs. In March, the U.S. Department of Agriculture told all 50 states to plan to fight EBT skimmer fraud, which happens when bad actors install a card reader on top of a legitimate point of sale at a retail store. 

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Commentary: The Uncomfortable Truths About the Food Stamp Program

Volunteers sorting through food stamps

A recent administrative action has permanently increased benefits for the Supplemental Nutrition Assistance Program (SNAP) by 25 percent. Unfortunately, this historic boost fails to address the structural problems that plague this nearly 60-year-old program.

The official Supplemental Nutrition Assistance Program (SNAP) webpage proudly proclaims that, “SNAP provides nutrition benefits to supplement the food budget of needy families so they can purchase healthy food…”

To that admirable end, the program formerly known as food stamps distributed $79 billion to 40 million people last year. Yet this desire to provide wholesome food to needy families conflicts with clear evidence that wholesome food is not what they think they need. Whether they play by the rules or not, people receiving SNAP benefits currently spend between 70-100 percent of that benefit on things other than healthy food.

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Increase in Food Stamp Benefits to Begin in October

After a major update to the food stamp system, known as the Supplemental Nutrition Assistance Program (SNAP), recipients will see a massive increase in food stamp handouts in the month of October, according to CNN.

Benefits will rise by approximately 27 percent compared to pre-pandemic levels, the largest such increase in the program’s history. Even after the special extension and increase that was implemented specifically due to the COVID-19 pandemic has expired, the regular handouts will go up due to a revision of the Thrifty Food Plan.

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