EBT Fraud Scheme Stole Over $7 Million in SNAP Benefits, Manhattan DA Says

a standard electronic card payment terminal sitting on a worn deli counter inside a neighborhood New York bodega, a hand holding a blank plastic payment card ne

AI-generated illustration; not a photograph of the reported event.

Major EBT Fraud Scheme Exposed in New York

An operation described by prosecutors as a "fraud factory" allegedly stole more than $7 million in SNAP benefits by exploiting stolen EBT card information, according to the Manhattan District Attorney's Office. The alleged scheme targeted low-income New Yorkers who rely on food assistance, further exacerbating the issue of ebt fraud in the region.

Details of the SNAP Benefits Theft

Court documents reveal that the group of defendants conspired to "steal more than $7 million" by using both real and fictitious delis to open credit card and EBT processing accounts. Authorities say the perpetrators waited until Electronic Benefit Transfer (EBT) cards were loaded with SNAP benefits before transferring funds out of the accounts, leaving thousands of victims without their expected financial support for food.

Methods and Impact on Victims

Prosecutors allege the defendants obtained and used stolen EBT card information through skimming or other theft techniques. Once benefits were deposited to these cards, the defendants quickly drained the accounts. The stolen funds were reportedly converted into cash and also used to purchase luxury vehicles, according to law enforcement officials. The scheme, which investigators say lasted over a two-year period, directly targeted vulnerable populations dependent on food assistance. One official remarked, "They were people who were going to withdraw funds using an EBT card and the money was gone."

Ongoing Criminal Investigation and Grand Larceny Charges

The Manhattan District Attorney, Alvin Bragg, stated that investigators allege the defendants not only stole benefits for personal gain but also sent some of the proceeds overseas to Yemen. Three of the eight defendants appeared in court Thursday, facing charges that include grand larceny. All pleaded not guilty, including the alleged leader of the operation. Defense attorney Michael Farkas commented on the case, noting that the leader status “remains to be seen.” The investigation and prosecution continue to unfold.

Authorities and Experts Warn About EBT Card Theft

This case follows action by the U.S. Secret Service, which demonstrated earlier this year how skimming devices can be used at bodegas and other stores to capture EBT card data, a key mechanism in food assistance fraud. Experts urge EBT cardholders to check for tampering on card readers, change PINs monthly, and remember that state agencies will never call or text to request your PIN.

Preventing Benefit Theft and Protecting EBT Card Security

As ebt card security becomes increasingly important, both law enforcement and social service agencies are emphasizing vigilance among recipients to minimize the risk of low income fraud. The Manhattan District Attorney’s Office continues its criminal investigation, aiming to recover stolen SNAP benefits and bring those responsible for benefit theft to justice.