Denver food stamp fraud: National problem as reimbursement ends

Photo byColorado Department of Human Services

A rash of food stamp fraud in Denver and statewide is part of a problem gripping the entire U.S., a representative of Denver Department of Human Services said Tuesday.

“Unfortunately, this is occurring nationwide,” said DHS spokesperson Adriana Lopez. “While DHS helps to connect people with benefits, we don’t have control over how funds are administered or how fraud is corrected at the county level.”

An explanation of how fraudsters skim the benefits off cards has been elusive. Last year, the Colorado Department of Human Services instituted processes for refunding stolen benefits. According to a news release, only benefits lost through electronic theft are eligible for replacement. Benefits cannot be replaced if a physical EBT card was lost or stolen, if the card owner gave their card number and/or PIN to someone, or if they wrote their PIN on their EBT card.

Reimbursement of stolen benefits to end

But that reimbursement ends Sept. 30. Anyone who is a victim of food stamp fraud after that will be out their benefits. Those victimized before Sept. 30 have 30 days from the fraud date to make a claim.

Congress could extend the reimbursements by reappropriating funding, Lopez said. According to the news release, such fraud is not uncommon. In just seven weeks in July and August of 2023, Colorado returned $167,516.58 in stolen funds to 255 recipients of SNAP and other benefits, the news release stated.

Spotting card skimmers

One way the criminals get cardholders' information is through skimmers. Skimmers are placed on cash registers at retailers. One wonders if employees place the skimmers there since they are in control of the registers.

The skimmers can be seen with the naked eye and dismantled. “As customers swipe their cards into the skimmer, the device saves and stores card information immediately,” according to the news release. “If a credit card slot looks different from the other card readers at the store, it might be a setup for card-skimming fraud.”

The news release advises that before sliding a credit card through the machine, users should “gently tug on the reader to ensure it is securely attached; skimmers will easily pop off with little effort. There is often a small camera attached to capture PIN numbers as they are entered, so users should cover their finger with their other hand while pressing the buttons.”

If a user finds a credit card skimmer, they should contact the store manager or the police to file a police report, according to the news release. This is a necessary step so that the device can be placed safely in the hands of authorities.