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Price Hikes, Benefit Strikes: Rising Grocery Prices and the Surge in Government Aid Abuse

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Tasha Elysee

BACKGROUND

In February, USDA.gov has reported a forecast of grocery prices increasing by 3.3% in 2025.¹ In addition to that the price of imported baby formula is also predicted to increase as a result of new tariff policies.²

Coinciding with the increases, in March we observed a 91% increase in chatter surrounding government assistance programs such as Supplemental Nutrition Assistance Program (SNAP), Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), and Temporary Assistance for Needy Families (TANF) benefits compared to the last 6 months.

Although abuse of government assistance programs is not new, it’s possible that the current economic situation and the increased prices on groceries has propelled this activity by fraudsters.

Some of the ways in which they are abusing these programs include selling and/or cashing out stolen ebt cards using POS terminals, selling or using the unused benefits loaded onto the ebt (SNAP, WIC benefits), using willing participants to illicitly apply, or using compromised personal identifiable information (PII) otherwise known by fraudsters as “fullz” to apply for food assistance.

THE TARGETS

SNAP & WIC

To support families, the government has programs like SNAP , which helps low-income individuals and families afford food. WIC is another key program focused on providing nutritional support and resources to women who are pregnant or breastfeeding, as well as infants and children up to age five. Both SNAP AND WIC benefits are made available through an Electronic Benefits Transfer (EBT) card, which is the electronic system responsible for transferring benefits funds.

TANF

TANF offers temporary cash assistance to families with children who meet specific low-income criteria in which those funds can be deposited into an account.³

COMMON WAYS FRAUDSTERS ARE ABUSING THEM

CASHING OUT: Fraudsters can purchase a compromised EBT card to cash out the card. Some states allow cash out privileges such as Florida for example who offers Temporary Cash Assistance.⁴ Fraudsters may opt to cash out the card via POS terminal in the fraudster’s possession. This could be via a fictitious merchant⁵ or through purchasing goods to resell.

Price Hikes and Benefit Strikes 1 — An example of a carding market catering exclusively to the sale of EBT cards.

GROCERIES: We have seen fraudsters illicitly utilize SNAP/WIC benefits on food items at the grocery stores. By doing so, fraudsters may post the receipt as a way to show proof of balance on the EBT card as well as the benefits. In addition some fraudsters are also posting screenshots of the EBT card inside a virtual wallet to further prove the EBT card is valid and display the benefits.

Price Hikes and Benefit Strikes 2 — A fraudster expressing his success with EBT and food stamps.

Price Hikes and Benefit Strikes 3 — An example of a fraudster showing an EBT card inside the Walmart wallet. Claiming that all the EBT card he is selling comes with both food and cash balances.

Price Hikes and Benefit Strikes 4 — Another example of a fraudster showing remaining balance on EBT card after purchasing from the grocery store.

Price Hikes and Benefit Strikes 5 — Example of a fraudster who recommends the use of a “head” to apply for TANF.

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MOON-LIGHTING RECIPIENTS: Fraudsters may also opt to elicit the help of applicants to apply to these programs. In the below example, fraudsters were discussed applying for TANF whereby it was recommended that the fraudster use a “head” to be approved for this benefit. A “head” typically means an individual who uses his/her own information to assist in fraudulent applications, deposits, etc.

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COMPROMISED PERSONAL IDENTIFABLE INFORMATION (PII): Lastly, fraudsters may use compromised personal identifiable information (PII) or “fullz” to apply for these benefits online directly from the state or federal government assistance websites.

Price Hikes and Benefit Strikes 6 — Example of a step by step walkthrough of a fraudster applying for these benefits online using fullz.

TAKEAWAYS

The increase in grocery prices may be contributing to a surge in interest and fraud around government assistance programs (SNAP, WIC, TANF). Given the interest in these food related benefits, it’s possible that fraudsters may attempt to install physical skimmers at grocery stores and/or food establishments to harvest EBT or other payment cards.

For government assistance programs like TANF where the funds can be deposited directly into a bank account, financial institutions should be mindful of new account openings where the initial deposit may be from government assistance. Additionally screening for these accounts may be warranted.

¹https://www.ers.usda.gov/data-products/charts-of-note/chart-detail?chartId=111015
²https://www.newsweek.com/donald-trumps-tariffs-could-raise-cost-baby-formula-2055659
³https://soarworks.samhsa.gov/article/other-resources-for-children-and-families-tanf-snap-and-wic#:~:text=the%20.gov%20website.-,Other%20Resources%20for%20Children%20and%20Families%3A%20TANF%2C%20SNAP%2C%20and,criteria%20and%20the%20application%20processes
⁴https://www.myflfamilies.com/services/public-assistance/temporary-cash-assistance
⁵https://paymentcloudinc.com/blog/merchant-account-fraud/#:~:text=Fake%20Merchant%20Service%20Providers,or%20start%20charging%20exorbitant%20fees