Policy & Practice | Summer 2024

technology speaks

By Julianna Lai, Justin King, and Toral Patel

Shaping Policy Action: Customer Insights on EBT Theft

T he theft of electronic benefits tremendous harm to Americans with low-income and caused sig nificant financial losses for taxpayers. In California alone, losses have amounted to $181 million, while the federal government has spent $61.5 million on replacement benefits. These staggering figures only reflect reported losses. Stakeholders across human services have been working tirelessly to implement new processes and security measures for (EBT), but theft continues to affect American families at an unprecedented rate. Propel, the team behind the Providers app, surveyed 10,690 EBT customers in April 2024 to understand their awareness of EBT theft and the challenges they face. This survey included 1,770 theft victims. The following insights can help inform ongoing efforts to strengthen the EBT system, a crucial lifeline for millions of households. EBTTheft Exacerbates Food and Financial Insecurity Among surveyed theft victims, 81 percent reported theft of their Supplemental Nutrition Assistance Program (SNAP) benefits with an average loss of $925. A smaller share lost cash benefits, with a higher average loss of $1,482. Around 12 percent of surveyed theft victims had both SNAP and cash benefits stolen; one third were victimized multiple times. These losses have staggering impacts on the financial, physical, transfer (EBT) cards has inflicted

“It’s devastating to have your benefits stolen or threatened, espe cially when you’re counting on every penny and trying to change your life for the better,” wrote Megan from Washington. Customers Lack Critical Information About EBTTheft A quarter of all survey respondents had never heard about EBT theft, and more than 51 percent have limited to

and mental health of SNAP house holds that already grapple with food insecurity. As a result of EBT theft, 44 percent of surveyed theft victims borrowed money or went into debt, and 40 percent struggled to pay essential expenses such as rent and utilities. Fifty-three percent of theft victims skipped meals or ate less, and 54 percent relied on food banks or other charitable organizations after losing their benefits. Nearly 60 percent reported increased stress or anxiety.

Illustration by Chris Campbell

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Policy & Practice Summer 2024