PARMA HEIGHTS, Ohio — Since June, Ohio has paid out more than $1 million to victims of food stamp theft.
That’s compensation for roughly 2,500 people who lost money off their Ohio Direction Cards—even though those cards were safely stowed in their wallets, pockets or purses.
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“Just like there are criminal rings for stealing financial information from credit cards and debit cards, those same types of criminal enterprises are active in trying to steal SNAP benefits,” said Matt Damschroder, director of the Ohio Department of Job and Family Services.
“It’s a growing problem,” he added, “and we’re spending a lot of time on it.”
'I thought it was a mistake'
News 5 started looking into electronic benefits theft in mid-February after hearing from viewers. Despite warnings on government websites and social media, EBT recipients like Donna Bell are getting cleaned out by thieves. Then they’re spending hours trying to get help.
Bell, 55, woke up on Feb. 16 and checked her Ohio Direction Card balance by phone.
The Parma Heights resident expected to hear $722. Instead, the number was zero.
“I was really shocked,” she said. “I thought it was a mistake initially.”
A single transaction had drained her account. She called the Ohio EBT customer service phone line and, to her surprise, reached a representative. Then, she got another shock.
“He said ‘You spent $722 in Chicago,’” she said. “I said, ‘I haven’t been to Chicago in 10 years.’”
Now Bell, a former administrative assistant who is searching for jobs, worries she won’t get the money back. “That will put me in a financial bind, for sure,” she said.
'It offends the human spirit'
In late 2022, Congress passed a law that lets states access federal funds to repay victims of electronic benefits theft. Ohio launched its reimbursement program in June.
Investigators look for signs of electronic theft, like abnormally large purchases, buying sprees or account-draining transactions. Thieves use skimmers, cameras and other gadgets to capture card numbers and PIN numbers. They also solicit information by text message and phone.
“Not only is it criminal activity,” Damschroder said, “but it offends the human spirit even beyond the normal criminal activity.”
Robert Bennett, a Cleveland man who lost more than $1,400 to electronic benefits theft earlier this month, got good news on Friday. Cuyahoga County told him that his reimbursement request had been approved. He and his wife rely on an EBT card to help feed five children.
But there are limits on what the federal government, through the state, will repay.
“Certainly, we want to be cautious and not open a new avenue for possible fraud to take place,” Damschroder said.
'I'm terrified right now'
Ohio cardholders can request reimbursement only twice in a fiscal year. And the amount they’re eligible for is capped at twice their monthly benefits payment.
Bell said she receives $291 a month. She’s been carrying a balance on her card, spending as little as possible while applying for jobs. Based on the repayment formula outlined in a state policy document, she might be able to recoup only $582 – forgoing $140.
That might not seem like a lot. But to Bell, it’s huge.
“I had a nice, comfy savings, but I don’t anymore,” she said. “And I’m terrified right now.”
Damschroder said the state is exploring what it would cost to upgrade the Ohio Direction Cards, which have magnetic stripes, to include microchips. Embedded chips, which are standard on debit and credit cards, make cards harder to skim.
The federal government doesn’t require—or pay for—that added security feature.
“There’s going to be a requirement for us to get some additional funding before we can move forward with anything,” Damschroder said.
For now, he added, “prevention is the most effective way to limit criminal activity.”
'They are not making this easy'
Officials are asking cardholders to change their PINs frequently. And to lock their cards to prevent anyone else from using them. That’s possible through the ConnectEBT mobile app.
Bell didn't have access to that app yet. And, until this week, she didn’t know about the option to lock and unlock her card. After making phone calls, researching online and submitting a fraud report, she has a message for program managers and policymakers.
“They are not making this easy for victims,” she said. “So I would like to see that get better. … Because I was scrambling. It took me hours to find what I did find.”
