Cyber Risks · Krebs on Security

New Protections for Food Benefits Stolen by Skimmers

Summary: President Biden signed the Consolidated Appropriations Act of 2023 on December 29, 2022, which for the first time allows states to use federal funds to replace EBT benefits stolen by card skimming, with reimbursement dating back to October 1, 2022. All 50 states must submit plans for protecting and replacing stolen benefits, with USDA guidance issued January 31 and a February 27, 2023 deadline before states risk losing reimbursement eligibility.

Bottom line: Organized crime groups began massively targeting EBT accounts in 2022, emptying them at ATMs right after monthly disbursement, and most EBT cards carry no smart chip and effectively zero fraud controls because the card-network infrastructure that polices traditional payments does not exist in state EBT programs.

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Data Breaches
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