It wasn’t the kind of call a grocery store gets every day. A customer with a thick Eastern European accent was on the phone saying he wanted to buy several thousand cans of Red Bull. Could the store have them in stock in a few days? Also, did they have equipment to move all those stacks of energy drinks into the parking lot, where two minivans would be waiting?
When the day came, Oct. 19, 2022, employees at the Smart & Final store in San Diego sold 3,960 cans of Red Bull and 720 of Monster Energy to two men and two women, all with the same accent, and helped them wheel the pallets out back. To pay for it all — the bill came to $10,747.05 — the group pulled out piles of plastic. These weren’t credit or debit cards; they looked more like hotel-room keys. There were 25 cards in all, each with a different amount loaded onto it, and the four people took turns swiping one after another. Then, the payment complete, they drove off.
In the days that followed, people as far away as New York and Florida made panicked calls to the store. They wanted to know why their food-stamp accounts (containing their Supplemental Nutrition Assistance Program, or SNAP, benefits) had been drained at this seemingly random location in San Diego.
It would turn out that what became known as the Red Bull Crew had gotten ahold of their SNAP data and used the funds to buy the energy drinks, which they then sold online or to smaller stores. It was hardly an isolated event. From September through November of that year, the same crew, part of a criminal syndicate based in Romania, bought at least $305,274.52 in energy drinks, using SNAP account information and PINs stolen from at least 174 victims nationwide, according to court documents and federal investigators.
To hear the Trump administration tell it, the SNAP program is under siege by well-heeled recipients of food stamps. Vice President JD Vance, upon being named “Fraud Czar” this spring, said: “There are people who have Lamborghinis who currently receive SNAP benefits.” Agriculture Secretary Brooke Rollins, whose agency oversees the program, regularly goes on TV and social media to allege that masses of SNAP recipients are scamming the system, driving Bentleys, Ferraris, Maseratis and, yes, Lamborghinis.
The federal government’s own statistics tell a different story. Confirmed cases of intentional program violations — fraud — committed by SNAP recipients account for $64 million a year, or about 0.08% of all benefits issued annually, according to the most recent 50-state reports compiled by the U.S. Department of Agriculture.
Meanwhile a far bigger fraud wave has exploded over the past five years: organized theft from SNAP recipients. In 2025, $470 million was stolen electronically from beneficiaries — and thus from the U.S. taxpayer — according to data supplied to ProPublica by Propel, a company that provides a mobile app for SNAP recipients to check their account balances and transaction histories. More than 990,000 households that received food assistance last year had benefits stolen. (The reason it’s necessary to use data from a private company: The federal government has stopped tracking rates of this crime.)
ProPublica interviewed nearly 100 victims of SNAP theft, federal prosecutors, Secret Service agents, USDA officials, caseworkers and other experts to understand what’s behind this phenomenon and why more isn’t being done to stop it. The victims are almost all working people with families, or retirees, who have struggled to afford groceries in the current economy. Most didn’t learn about the crime until they were in a checkout line, only to have their benefit card declined.
Upon reporting the disappearance of their food assistance, victims are informed that nothing can be done under current federal law. “The only thing they said was that [my benefits] cannot be refunded unless they were lost due to a natural disaster,” said one SNAP theft victim in Ohio. “They told me they’d add my name to the list,” said another in rural Oregon. “They advised if I feel the place is sketchy, don’t run my card there,” a victim in Philadelphia said. Still another, in Virginia, added, “They even charged me $2 for a replacement card.”
Perhaps the most vexing aspect of all: The federal government knows how to prevent the vast majority of this crime in a single step. Congress just hasn’t been willing to take it.
SNAP theft is an old scheme applied to a new target. For years, scammers would surreptitiously install skimming devices on card readers at ATMs, gas pumps and corner stores. These devices could read the data on people’s cards as they swiped — while a pinhole camera or overlay keypad captured their PINs — all of which could be picked up later or sent via Bluetooth to someone sitting in a nearby cafe or parking lot. This pilfered data, in turn, was used to make online purchases, or it was loaded onto cloned cards to withdraw cash.
Skimming became exponentially more difficult when credit and debit card companies installed digital microchips in the 2010s and then introduced tap-to-pay. But one kind of card did not get the new chips: Electronic Benefits Transfer, or EBT, cards, which people use to access SNAP and other public assistance. These still rely on the 1960s-era magnetic-stripe technology that skimmers can easily read.
EBT cards are not a particularly high-value target compared with bank cards. (The average monthly SNAP benefit is about $350 per household.) But funding boosts to SNAP during the pandemic temporarily increased benefit amounts, and profits could be considerable if you skimmed hundreds of people’s card information every month. Skimming teams, often run by Romanian gangs, pivoted. With cloned magnetic-stripe cards, they started buying up huge quantities of SNAP-eligible products like energy drinks and baby formula that are easy to store and resell.
“We’ve started many, many briefings saying that one of the biggest ways we’re going to fight this is to just get chips in the cards,” said Michael Peck, assistant special agent in charge of the Secret Service’s Criminal Investigative Division. Among the Secret Service’s lesser-known functions is investigating many financial crimes, and Peck leads its efforts against benefit theft. He said he and his team have delivered this message on Capitol Hill both at committee meetings and to individual members of Congress.
Yet congressional leadership has continually blocked legislation that would fund chip EBT cards nationally, despite universal support for the measure among Democrats and significant support among the Republican rank and file. For instance, House Committee on Agriculture Chairman Glenn Thompson, a Republican from Pennsylvania, said at a hearing in March that chip technology is “very effective.” But he shut down a bipartisan proposal to upgrade EBT cards with chips, citing unspecified budgetary constraints. (“Chairman Thompson is supportive of finding a fiscally responsible path forward for implementing policy that supports chip cards,” a committee aide said in a statement on his behalf. She added that “there was an appetite” for this reform among Republicans, but that Democrats weren’t willing to “find the budgetary offsets” for it.)
The Congressional Budget Office has yet to formally score the proposal, but multiple Hill staffers said they were told the total cost would be in the range of $215 million, as compared to the $600 million-plus annual loss on theft of SNAP and other benefits.
The main thing Congress has done about SNAP theft is to abandon a previous effort to help victims. The federal government had, since late 2022, been replacing people’s stolen funds, just as banks are required to do if your debit card is hacked. As a result, 753,929 households were compensated.
In December 2024, a bipartisan spending agreement that included a provision to extend these reimbursements through 2028 was on the brink of becoming law. But Elon Musk, who had been named a leader of the new Department of Government Efficiency, attacked the legislation more than 100 times on X, pushing to “defund everything.” (Musk did not reply to a request for comment.) Trump then sank the deal. Victims of SNAP theft can no longer get any of their benefits replaced. And with the government off the hook for losses, there is now less incentive to put money into the solution.
In the 22 months since, the Trump administration has gone on to strip funds for addressing EBT theft from the USDA’s annual budget requests to Congress, while cutting at least 650 of the staff of the federal Food and Nutrition Administration, the subagency that oversees SNAP. More than half of the technical experts whom the agency had hired to help it develop EBT card security guidance have been pushed out, according to the Government Accountability Office.
“Many of us who were working on fraud, we’ve left the federal government entirely,” said Kym Ayodeji, who had been a data scientist in the SNAP program until she departed this spring. (FNA, the agency she worked for, is also responsible for tracking fraud committed by retailers, which is far more prevalent than that committed by beneficiaries.) Ayodeji said she and her colleagues had been working on ways to identify retailers where unusually large quantities of certain items had been purchased and addresses where purchases made with many different EBT cards were being delivered. Some of this work was indefinitely delayed by firings, early retirements, agency reorganizations and government shutdowns, she said.
Have Your SNAP Benefits Ever Been Stolen? Help ProPublica Investigate.
We need your help to report on EBT theft. Please share this form with others in your community who’ve found their SNAP benefits disappeared.
SNAP is federally funded and supervised. Congress and the USDA traditionally mandate, and pay much of the costs for, major changes to the system, especially involving technical coordination between states. States evaluate applicants and administer the accounts of those who are approved.
That said, states are allowed to adopt chip cards on their own. California has nearly completed the transition, and Alabama and Oklahoma began rolling out new cards this year. A handful of others initiated the process in recent months — before the One Big Beautiful Bill Act, starting Oct. 1, cut 50% of states’ administrative funding for SNAP, which Alabama and the others had tapped to transition to chip technology.
The rest — about 40 states — have likely missed their window, unless Congress acts. They’re also waiting for regulatory guidance on EBT card security and chip card implementation that the USDA has been claiming for nearly four years it is planning to publish. (The USDA Office of Inspector General has found that the agency’s failure to issue this has allowed the theft of at least $555 million in SNAP benefits.)
State-level SNAP administrators have also been overwhelmed with the hundreds of new requirements that the One Big Beautiful Bill Act has saddled them with. For one, the law mandates that states adopt intensive new work requirements for older adults and others, resulting in voluminous additional monthly paperwork. And federal funds will be slashed even further next year if states don’t scramble to reduce their “payment error rate,” a figure that measures unintentional over- and underpayments in SNAP benefits. With all of this to juggle, many state officials told ProPublica that they’ve put chip card implementation on hold in order to implement the Trump law — one of whose ostensible goals was to reduce fraud.
All the while, that law has cut food aid for more than 1.2 million children. The USDA’s Rollins has said that nearly 6 million people in total have been “moved off SNAP” during the current administration.
The White House declined to respond to a detailed list of questions. A USDA spokesperson, in an emailed statement, did not refute that Rollins has focused on individual SNAP recipient fraud rather than on EBT theft, but said that finding “cracks in public statements screams politics, not fact-finding.” The spokesperson also did not address ProPublica’s reporting showing that the agency has failed to deliver solutions on EBT theft specifically. Instead, the statement pointed to the agency’s work, in collaboration with the Department of Justice, combating retailer fraud. The USDA says it has cracked down on thousands of stores that were abusing their SNAP privileges.
Absent action from Congress or USDA leadership, it has largely been left to the Secret Service to apply an enforcement approach to what is arguably a policy problem. Agents first went after gangs like the Red Bull Crew, often by watching hours upon hours of grocery store surveillance footage. More recently, they’ve tried to get ahead of the scammers by heading to cities that have been hit by EBT theft attacks and then going store to store to check card readers for skimming devices. The agency has run more than 70 of these operations since April 2024, independent of any White House initiative.
Most of them are led by Peck, the assistant special agent in charge. With his form-fitting black polo tucked into cargo pants and a contoured beard, he has a flat affect even as he lists off colorful details like how the criminals sometimes ship dishwashers full of cash overseas. But he also emphasizes the vulnerability of the victims and wishes there was even more his team could do for them. “The U.S. has been fighting the War on Drugs and the War on Terror for how many years?” he said. “We are pushing hard and we’re doing all we can with the resources and abilities that we have.”
One bright morning in late June, dozens of law enforcement officers gathered in a Secret Service meeting room on the top floor of a downtown Brooklyn skyscraper, with a commanding view of the New York City skyline. In addition to unarmed Secret Service analysts in short-sleeved shirts inscribed with the field office they were joining from (Nashville, Miami, San Diego), there were agents from the USDA Office of Inspector General as well as a smattering of NYPD officers — who had guns, handcuffs and the jurisdiction to make arrests should anything go awry that day.
From a podium, Peck recapped how the multiday New York operation was going so far, including that the previous day, officers had happened upon two foreign nationals installing a skimming device, chased them down and made arrests. “Be safe, watch backs, stay fed,” he concluded.
Then everyone dispersed into teams of three or four. Each was given a list of dozens of stores in Brooklyn or Queens — disproportionately ethnic and dollar stores, but also some larger chains like 7-11 — that they were assigned to visit, based on data analytics showing where skimming activity was most probable.
The squad that ProPublica joined was headed to Midwood, in South Brooklyn, which is home to Orthodox Jews and immigrants from the Middle East, Central Asia and elsewhere. As we walked around the neighborhood with these federal agents, we got plenty of confused looks and some scared ones, too.
“Hello, we’re here with the Secret Service,” one of the analysts would say upon entering each store. Then they’d ask the store manager for permission to inspect each card reader. They also handed out flyers in four languages telling the cashiers what to look out for.
When they did find a skimming device, they donned gloves and masks to handle it. After prying it off the card reader, they bagged it and tagged it, to be sent in for DNA and fingerprint testing as well as digital forensic analysis. Maybe a lead could be extracted, a connection to a larger EBT theft ring.
These missions are clearly well-intentioned, and every skimmer removed saves families from being deprived of food. Yet, plainly, conducting store-to-store checks of card readers is inefficient. Over the course of two years, the agency has spent tens of thousands of staff hours checking 69,805 point-of-sale terminals at stores, 42,972 gas pumps and 10,661 ATMs. They’ve found 637 skimming devices. And as one agent told ProPublica, “There could be a new skimmer on there tomorrow.”
Ultimately, it just won’t be possible to arrest one’s way out of this crisis, both federal and state law enforcement officials acknowledged. Low-level runners keep arriving from Romania and elsewhere; even if they do get caught, they’re often able to bond out of jail because they’re only facing state charges for nonviolent offenses. Then they disappear.
Funding for chip EBT cards still faces dim prospects on Capitol Hill, according to Democratic and Republican lawmakers and staffers, even with newfound support from major retailer associations and big players like Walmart. There’s a chip card provision in the Senate’s draft version of this year’s Farm Bill, but the whole package is mired in a dispute between the parties — over the One Big Beautiful Bill Act’s cuts to SNAP funding — that looks like it will last until well after the midterm elections. This almost doesn’t matter, given that on the House side, the Farm Bill has already passed, and it contains no funding for chip cards.
And there’s been no movement on repeated bipartisan proposals from Sen. John Fetterman of Pennsylvania and others to renew the reimbursement program for families that have had their food assistance taken.
Certainly, the mass distribution of any new payment technology isn’t easy. California, Alabama and Oklahoma have had to phase in their new cards gradually, allowing customers to still use the card’s magnetic stripe if the chip isn’t working everywhere yet. And they’ve tried to notify rural convenience stores and gas stations, and help corner bodegas update their card readers, so that no one is left with only a chip card in a desert of stores that still just accept magnetic stripe.
But by doing all of this and employing additional data tools, California has reduced the theft of food and cash benefits by as much as 83% in just two years, the governor’s office said. And Alabama officials claim their state hasn’t had any confirmed EBT theft cases since they began to distribute chip cards this year.
Still, chip cards aren’t the entire solution and doubtlessly, scammers will find clever ways to get around this technology. Moreover, SNAP recipients have largely been denied the basic services that banks and credit card companies use to block likely fraudulent transactions in real time. (Think of the email or text alerts you get from your bank when suspicious purchases are attempted with your card information.)
If states were to try this without federal help, they would have to individually pay for the additional security features. Most have gone for cheaper options like advising or requiring SNAP recipients to change their PIN regularly and to lock their card when not using it. Both are useful stopgaps but require constant diligence.
State and county SNAP caseworkers said they’ve been deeply frustrated that ever since Trump and Musk killed the reimbursement program, all they can do for victims is suggest they change their PIN more often and maybe try reporting the crime to local law enforcement. “It is a short conversation,” said Norman Vogele, a caseworker in Oregon. The date of the crime and the missing amount is recorded. “It isn’t clear why we even do that much,” he said, “as there is zero recourse.”
The Red Bull Crew stayed on the run for over a year, using looted food benefits to buy hundreds of thousands of dollars of bulk energy drinks in Oklahoma, Kansas, North Carolina, South Carolina and Georgia. After hundreds of hours of surveillance by the Secret Service, federal prosecutors and local authorities, all but one of the members were arrested and served sentences ranging from one to three years. They’ve all since been released, and some may have been deported.
Meanwhile, every day, SNAP theft sprees keep popping up in new corners of the country. A Secret Service official sounded gloomy about the pursuit of street-level operatives on its own, without policy change. “You can arrest them,” he said. “But essentially once you take them off the street, there’s 10 more that are doing the same thing.”
The post Scammers Are Stealing Millions From Food Stamp Recipients. Congress Could Fix It — but Won’t. appeared first on ProPublica.
This article, by Eli Hager, ProPublica, is republished from ProPublica, a nonprofit newsroom, under a Creative Commons license (CC BY-NC-ND). Read the original article.
