Cyber Risks · Krebs on Security

Lawsuit Seeks Food Benefits Stolen By Skimmers

Summary: The Massachusetts Law Reform Institute filed a class action lawsuit on Nov. 4 on behalf of low-income families whose SNAP benefits were stolen by card skimming devices installed at cash machines and grocery store checkout lanes, with thieves taking over a million SNAP dollars from thousands of Massachusetts families. The suit seeks to force Massachusetts to reimburse victims with state funds and to push the USDA, which funds the program, to allow states to replace stolen benefits with federal funds, since federal law bars states from using federal money for that purpose.

Bottom line: Most state-issued SNAP cards still lack chip technology, and the USDA's Oct. 31 guidance did not mention moving to chip cards, leaving 41 million people nationally on cards that are cheap to clone and holders with little recourse to recover stolen funds.

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Data Breaches
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