A lawsuit is currently trying to change how the government handles stolen SNAP benefits.
Now, if you’ve been using EBT for a while, you may have experienced this. We’ve heard from probably hundreds, maybe even thousands of you who have personally experienced this—where you didn’t lose your SNAP card, you didn’t do anything wrong. You just went shopping, there was a skimming device on the payment terminal, and as soon as you swiped your card, some thief—sometimes in another state—got a hold of that information, cloned your card, and then drained your benefits before you could even get to them in some cases.
This is incredibly frustrating. It’s stealing millions, if not billions, of dollars from the government, and it’s taking that money right out of the mouths of low-income children, seniors, and people who rely on this essential program. It’s been going on for years, and it has been incredibly frustrating.
This is a transcript of our video. You can watch the full video on our YouTube channel: Low Income Relief.
Now, the way federal law is currently written, the government is not required to replace it when you lose that money to skimmers. We know that for a while—especially during pandemic times—there were emergency replacement rules, and then that expired. Now they’re not replacing those funds, and that’s leaving a lot of people stuck with a zero balance, no way to recover those funds, and no way to buy food.
That’s why we’re seeing this lawsuit now. But before we dive into all the details of who’s suing and what’s going on, I would love to know if this has ever happened to you. If this story sounds familiar, please leave us a comment. Hearing about your experiences really helps illustrate just how big this problem is.
How Skimming Theft Happens
We know that most of this theft is coming from skimmers—devices attached to the card terminal where you swipe your card. They’re really hard to see if you don’t know what you’re looking for. They clone your card number and PIN without your knowledge, and then they can drain those accounts almost immediately.
It’s just disgusting.
The Lawsuit Against USDA
Let’s talk about this lawsuit.
In 2023, a group of New Yorkers, represented by the Legal Aid Society and the global law firm Freshfields, filed a class action lawsuit against the USDA—the United States Department of Agriculture, which is the agency in charge of SNAP benefits.
A federal judge dismissed that case in August 2024, but the legal team has filed an appeal, and that fight is still ongoing in the courts.
The argument they’re making is really important. They’re saying that back when SNAP used paper coupons, stolen mail benefits were replaced because recipients had no control over them—they were stolen before they got to you. There was nothing you could have done differently.
They argue that this parallels skimming because, in a lot of cases, those skimmers steal benefits before you can access them. We’ve seen over and over again where your card is cloned, and then on deposit day, you get the deposit and within minutes that money is spent—often in a totally different state.
That’s a lot like mail theft, because the money disappears before you can access it.
They’re arguing that the same logic should apply.
They also say that when SNAP moved from paper coupons to EBT cards, Congress said recipients should keep similar rights. Lawyers argue that skimming victims are being excluded unfairly and are not receiving the same protections that SNAP users had in the paper coupon era.
There’s a quote from Ed Josephson from the Legal Aid Society:
“What Congress intended was that no group of SNAP recipients would lose out as a result of the transition from paper to EBT.”
But the USDA’s current rules on SNAP replacement were written long before digital theft became a widespread problem. The lawsuit argues that it’s time for those rules to catch up with modern threats.
Right now, the USDA can reimburse you if your card is physically stolen in the mail before it gets to you—but not if it’s stolen through skimming. That’s creating a problem for millions of families.
The Real-Life Impact
When this happens, a lot of people have to turn to food pantries or other organizations for help. But those resources are stretched very thin, too, and it can be hard to fully replace your SNAP balance that way.
That’s why SNAP is such a critical nutrition program. Losing those benefits puts a lot of people at risk, including seniors, young children, and people with disabilities.
How to Protect Your EBT Benefits
While this lawsuit works its way through the courts—which could take time—there are steps you can take to help keep your account safer.
First, change your PIN frequently. Using the same PIN for months makes it easier for thieves to use your data. I recommend changing it at least every month, if not every week. If they clone your card but don’t have your current PIN, they can’t access your benefits.
Second, check your balance regularly. We’ve heard heartbreaking stories from people who went shopping on deposit day, filled their carts, got to the register, and then found out their money was gone. It wasn’t until they checked their account that they realized the funds had already been drained.
Never assume your money is still there—keep tabs on it.
Third, inspect the card reader before you use it. Look for wobbly keypads, misaligned card slots, or loose or missing pieces. Those can all be signs of a skimming device.
I personally like to shop at stores that use security tape. Some stores place a seal over the machine showing it’s been inspected. If that seal is broken, it’s a sign that something may have been tampered with.
Finally, use your state’s EBT app if available. Many states allow you to block out-of-state or online transactions and toggle those settings on only when needed. It’s similar to freezing your credit—you keep it locked unless you’re actively using it.
If I still had EBT, I would absolutely be changing my PIN every week and keeping those settings locked down.
And just to be clear—this is not about blaming anyone. You shouldn’t have to jump through these hoops. Theft shouldn’t happen. But since it is happening, taking these steps can help protect your benefits.
Changes Coming to EBT Cards
There is some good news.
The reason this type of theft is so easy is because EBT cards still use old magnetic stripes. Banks have already moved away from that and now use chip cards, which are much more secure.
The EBT system is starting to move in that direction, too. Chip cards have already rolled out in California and are expected in New York soon, with other states discussing similar upgrades.
These chip cards should be much harder to clone and will help reduce this kind of fraud.
Final Thoughts
This lawsuit could eventually lead to better protections and replacement benefits for victims—but it will take time.
In the meantime, protecting your account is the best thing you can do.
I hope this has been helpful to you.
I’m in California with a chip card. For the first few months, most machines were wonky or didn’t work at all. Now, they almost always work, BUT we’re still subject to the store’s implementation. Sometimes it feels like having to memorize the secret handshake for each store. Trader Joe’s remains the most complicated, where you have first insert to read the chip, then swipe once, and still have to specify to the cashier exactly how much to apply to the card if it won’t pay for the entire purchase.
What I learned this week is that stores that still prefer a swipe now must first read the chip and get your PIN. The system at some stores doesn’t always ask if you want cash or food, which is a tipoff that it didn’t read the card correctly and won’t tell you again until declined at the end of the song and dance. The process can be irritating, but seems to get a little better with time.
I’ve noticed that insurance cards, EBT cards, and other regular cards must be used in a particular order, as well, or ultimately the final transaction will fail the entire sale, causing you to have to start over. The insurance card is a new experience for me and the Costco employees that helped me figure it out after several tries.
Thank you for sharing this—it’s really helpful. A lot of people are running into similar issues with the newer EBT cards, and your tips about how different stores handle them could make things a lot easier for others.
It’s frustrating that the process isn’t consistent yet, but we’re glad to hear it’s improving, even if slowly.
04/09/26 I just got off the phone with Mary from Medicare formulary 800-633-4227 to discuss affordable options for Medicare and Medicaid recipients to purchase GLP-1 prescriptions and Mary told me that Medicare is currently in the process of negotiating prices for the GLP-1 drugs and that the Balance model program (Better Approaches to Lifestyle and Nutrition for Comprehensive Health) will be go into effect in May 2026 for Medicaid recipients and in January 2027 to Medicare recipients. A doctor’s prescriptions will be required to get the medication.