Victims of food benefits theft sue NY over outdated tech they say puts them at risk

New Yorkers who get money for groceries each month through a major government welfare program are suing New York for using outdated technology they say makes it too easy for thieves to steal their benefits.

Seven residents who say they have faced a common form of electronic benefits theft known as “skimming” on Thursday filed a federal lawsuit against the state Office of Temporary and Disability Assistance, which administers the federally funded Supplemental Nutrition Assistance Program, or SNAP. La Red de Pueblos Transnacionales, a South Bronx community organization that says its members have been victims of SNAP theft, also joined the suit as a plaintiff.

SNAP theft is especially prevalent in New York, where residents received more than $6.5 billion from the program last year. New Yorkers have filed tens of thousands of claims for stolen benefits totaling millions of dollars.

The complaint alleges the state is violating federal law by failing to ensure New Yorkers receive benefits to which they’re entitled. The plaintiffs are asking the U.S. District Court of the Southern District of New York to require the state to replace the current electronic benefits cards, which have magnetic strips, with more modern chip cards, which are less susceptible to theft. The suit also seeks to reimburse victims of SNAP theft until the cards are updated.

“Every SNAP recipient has the right to timely, accurate, and fair provision of their benefits and because of constant skimming, they're not getting that,” Alison Roberts, an attorney for the plaintiffs with the nonprofit Legal Services NYC, said.

The Office of Temporary and Disability Assistance declined to comment on the lawsuit Thursday, citing pending litigation.

But earlier this week, a spokesperson for the agency said funding to upgrade Electronic Benefit Transfer, or EBT, cards was not included in the state budget passed last month. Barbara Guinn, the agency’s commissioner, told New York Focus in February that chip cards were “the best path forward,” but said the switch could cost up to $40 million.

Anthony Farmer, the spokesperson, said the Office of Temporary and Disability Assistance was planning to request proposals from vendors to get an updated estimate. He added that the agency was "committed to protecting New Yorkers’ benefits from scammers."

Skimming often starts with someone swiping an EBT card at a grocery store or bodega. A hard-to-detect device can be placed over the top of a card reader, allowing thieves to collect shoppers’ personal information and later drain their accounts, according to New York City officials. The problem affects SNAP recipients nationwide and has become particularly widespread in New York, leading to the Secret Service reportedly partnering with the NYPD to track down skimming devices in the city.

The federal government began reimbursing SNAP recipients for stolen benefits in late 2022, but Congress let the reimbursement program expire last December. While the reimbursements were in place, New Yorkers submitted more than 150,000 claims for stolen benefits, about one out of every five claims nationwide, according to data from the U.S. Department of Agriculture. The federal government ultimately reimbursed New Yorkers for more than $50 million in stolen benefits.

Roberts said the end of the reimbursement program spurred the lawsuit against the state. “ We knew that our clients were facing the extreme hardship that comes with not having the money you count on to buy groceries,” she said.

Bronx mom Yiraldy Rodriguez had more than $800 in SNAP and other benefits stolen in 2023, leaving her with no money for groceries, according to the complaint.

“No mother wants to go through that,” Rodriguez, who has two young daughters, told Gothamist. “We ate, but very little.”

She said she filled the gap by borrowing money from her mother and relying on staples like rice and eggs. A month or two after her account was drained, Rodriguez was reimbursed for the stolen benefits, the complaint states. But she said she worries her benefits will get skimmed again because she hears about it happening to other people constantly.

“It’s very stressful,” Rodriguez said. “I check my account balance constantly.”

The USDA says updating EBT cards is “an important step to ensure that SNAP benefits are protected.” So far, only California has issued EBT chip cards, and four other states are in the process of making the switch, according to the department.

New York lawmakers have introduced bills in Albany in recent years that would require the state to adopt chip cards, but they haven’t passed the Legislature.

In the meantime, Gov. Kathy Hochul has signed legislation making it easier for SNAP recipients to lock their benefits cards when they’re not using them, and the New York City Department of Social Services has offered tips on how to protect against skimming.