The federal government cracks down on food stamp fraud, involving hundreds of thousands of people article cover image
News/Community Wire/Archive/May 30, 2012
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The federal government cracks down on food stamp fraud, involving hundreds of thousands of people

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The federal government cracks down on food stamp fraud, involving hundreds of thousands of people. U.S. food stamp recipients are accused of illegally reselling their recipient cards to get cash, and they even publicly post it on eBay or c...

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The federal government cracks down on food stamp fraud, involving hundreds of thousands of people. U.S. food stamp recipients are accused of illegally reselling their recipient cards to get cash, and they even publicly post it on eBay or craigslist. Sell them online and ask the government to reissue the beneficiary card. The USDA wants to crack down on fraud and investigate low-income applicants who apply for duplicate credit cards. The low-income food stamp program costs taxpayers $750 million each year, accounting for 1% of the Department of Agriculture's $75 billion supplemental nutrition program. More than 46 million people in the United States receive food stamps, nearly half of whom are children. The monthly benefit amount per person is equivalent to US$132. The Food Stamp Recipient Card is equivalent to a bank debit card, allowing users to purchase food at 231,000 designated authorized stores across the United States. Once the beneficiary card is reported lost, it will become invalid immediately. However, the Department of Agriculture does not require the use of valid photo ID, making it easier for different members of the family to purchase at different times. Some unscrupulous retailers allow customers to pay less in exchange for favored cards. At the same time, some beneficiaries are openly selling in the market. South Dakota, Oklahoma, Washington, Minnesota, and Washington state have the highest proportion of claims reported missing in a year, with as many as four or more claims. Additionally, Wyoming, Idaho, New Hampshire, North Carolina and Alabama had the lowest rates. The Department of Agriculture last year sent letters to eBay and Craigslist stating that buying and selling food stamps was illegal, and sent notices to Facebook and Twitter to warn them. Last year, 850,000 people in the United States were investigated for food stamp fraud, 2,000 stores were fined for misconduct, and 1,200 stores were permanently kicked out of the food stamp program.

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