Manhattan Prosecutors Charge Defendants in 7 Million SNAP Fraud Scheme

New York EBT Fraud Scheme Drains Over $7 Million in SNAP Benefits

A group of defendants operating what Manhattan prosecutors called a “fraud factory” allegedly stole more than $7 million in Supplemental Nutrition Assistance Program benefits by repeatedly exploiting stolen Electronic Benefit Transfer card data, WABC reported. The scheme targeted low-income New Yorkers who rely on food assistance, draining funds intended for groceries and converting the proceeds into cash and luxury vehicles.

“They were people who were going to withdraw funds using an EBT card and the money was gone,” a law enforcement official told WABC.

According to court documents filed by the Manhattan District Attorney’s Office, the defendants conspired to steal the funds by registering credit card and EBT processing accounts under the names of existing or fictitious delis. Investigators allege the operation spanned a two-year period, compromised thousands of victim accounts, and funneled a portion of the illicit proceeds overseas to Yemen.

How the Skimming Operation Targeted SNAP Recipients

Manhattan District Attorney Alvin Bragg detailed the mechanics of the operation during a briefing on the case. Prosecutors state that the conspirators obtained EBT card information through skimming devices or related tactics, then monitored accounts to strike the moment new benefits were deposited.

Manhattan district attorney alvin bragg speaks during a news conference thursday june in york photoyuki iwamura pool

“And then they were, we allege, skimming or otherwise stealing the card information and then just waiting to the day when the cards got loaded with new funds and then just swiping the cards right into their own accounts,” Bragg said.

The case surfaces just months after federal authorities cracked down on similar equipment vulnerabilities. In June, the U.S. Secret Service demonstrated how criminals physically install card-skimming hardware at bodegas and convenience stores across New York City to capture magnetic stripe data and PINs.

Three of the eight indicted defendants were arraigned Thursday on grand larceny and related charges, including the individual prosecutors allege led the conspiracy. All three pleaded not guilty.

“According to the district attorney he is the leader of this alleged conspiracy. That remains to be seen,” defense attorney Michael Farkas told WABC.

Protecting EBT Accounts From Theft

State and federal consumer protection guidelines advise SNAP recipients to inspect card readers for loose or altered parts before swiping. Experts recommend changing EBT account PINs on a monthly basis, ideally before benefit distribution dates, and reminding cardholders that official state agencies will never contact them via phone or text message to request a PIN.