Fraud Surges in SNAP - Over
One-Third of Agencies Report Spike in Identity Theft and EBT
Skimming, Especially Among Multi-Program Systems
ATLANTA, Oct. 22,
2024 /PRNewswire/ -- LexisNexis® Risk Solutions today
released its third annual LexisNexis® Risk Solutions True Cost of
Fraud™ Study for Supplemental Nutrition Assistance
Program (SNAP) Agencies and Integrated Eligibility Systems (IES).
This authoritative study reveals the level and impact of
fraud, including challenges, volume, and cost, as well
as resources that SNAP and IES agencies utilize to detect and
prevent fraud. In addition to analyzing the cost of
fraud, the study explores the time and resources
expended by SNAP investigators to prevent attacks and mitigate
fraud and analyzes current fraud trends
impacting these critical government benefits.
The 2024 study features a broad scope of integrated eligibility
systems (IES), including:
- Supplemental Nutrition Assistance Program (SNAP),
- Center for Medicaid Services (CMS),
- Special Supplemental Nutrition Program for Women, Infants and
Children (WIC),
- Temporary Assistance for Needy Families (TANF), and
- Low Income Home Energy Assistance Program (LIHEAP).
The 2024 study was expanded to focus on SNAP agencies'
application processing time (APT) and payment error rates (PER) and
the downstream impacts to beneficiary and case worker experience.
The study also examined the degree to which SNAP agencies have
implemented operational modernization features to support
fraud detection efficiencies while minimizing delays
and negative impacts to program beneficiaries and agency staff.
Key Findings:
- Rising Fraud Costs: SNAP agencies are
facing increasing costs as fraud continues to grow,
particularly through EBT skimming and account takeovers. Agencies
impacted by these types of fraud report losing an
average of $4.48 for every
$1 of benefits lost—higher than the
overall fraud cost of $3.93 per $1
lost.
- System Integration Adds Complexity: The expansion of IES
across Human Services programs has increased fraud
risks. With more access points for bad actors, fraud
costs have risen to $4.04 per
$1 lost through fraud,
up from $3.85 last year. While IES
enables better data sharing, it has not fully mitigated the
complexities of fraud detection and prevention.
- Delays Impacting Staff and Beneficiaries: Outdated
systems, manual processes, and resource limitations contribute to
application processing delays for SNAP agencies. These delays
negatively affect both the caseworker experience and the speed at
which benefits reach those in need. Major challenges include the
inability to quickly verify eligibility and identity data, leading
to processing backlogs and increased worker stress.
- Modernization and Fraud Detection are
Critical: Agencies struggle to combat fraud
without hindering the beneficiary experience. Malicious bots,
synthetic identities, and challenges in tracking transaction
sources are absorbing significant resources. Fraud
detection solutions remain underused at the application stage, with
most agencies focusing on post-issuance prevention. However,
agencies that integrate modernization with early-stage
fraud detection realizing improvements in processing
times, reduced fraud costs, and enhanced experiences
for both workers and beneficiaries.
"SNAP has become more crucial than ever as millions of Americans
face the dual crises of hunger and soaring food prices," said
Haywood Talcove, CEO of LexisNexis
Risk Solutions Government. "What is particularly alarming is the
rise in highly sophisticated criminal tactics, with both domestic
and international groups exploiting advanced technologies like
artificial intelligence and bots to target critical government aid
programs. Our latest study highlights the immense challenges
agencies face—not only in preventing fraud but in
modernizing systems to ensure that food assistance reaches those
who need it most. As these threats evolve, so too must our
defenses, because this is about more than just fighting
fraud—it is about protecting the livelihoods of
vulnerable families across the country."
The 2024 True Cost of Fraud™ Study highlights
the escalating costs of fraud for SNAP agencies,
driven by sophisticated fraud schemes and outdated
processes. Agencies that adopt a proactive approach—integrating
modernization efforts with early fraud detection—are
better equipped to lower fraud costs, reduce errors,
and improve service delivery for beneficiaries.
Download a copy of the True Cost of Fraud™
Study for Supplemental Nutrition Assistance Program (SNAP) Agencies
and Integrated Eligibility Systems (IES).
About LexisNexis Risk Solutions
LexisNexis® Risk
Solutions harnesses the power of information and advanced analytics
to provide insights that help businesses and governmental entities
reduce risk and improve decisions to benefit people around the
globe. We provide data and technology solutions for a wide range of
industries including government, insurance, financial services and
healthcare. Headquartered in metro Atlanta, Georgia, we have offices throughout
the world and are part of RELX (LSE: REL/NYSE: RELX), a global
provider of information and analytics for professional and business
customers. For more information, please
visit www.risk.lexisnexis.com and www.relx.com.
Media Contact:
Paul Eckloff
LexisNexis Risk Solutions
Mobile: +1.202.941.6986
Paul.Eckloff@lnssi.com
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