Alabama DHR addresses increase in EBT fraud, cautions clients against phone scams

The Alabama Department of Human Resources (DHR) is continuing to receive an increased number of fraud reports throughout the state. DHR continues to process requests for replacement of Supplemental Nutrition Assistance Program (SNAP) benefits stolen from households impacted by EBT card skimming, cloning, and similar fraud. This is non-client fraud and is likely not due to anything a client is doing, unless the client is sharing their card or PIN number with anyone.

DHR continues to accept and process households’ replacement requests through each county office and can reimburse clients whose benefits were stolen through Dec. 20, 2024 (updated),up totwice within the federal fiscal year, provided the client reports the theft within 30 days of discovering the theft.

What To Do If Recipients Believe EBT Benefits Are Stolen

If you believe your EBT card has been compromised or notice an unexplained use of your benefits, take the following steps immediately:

1. Change your EBT card PIN number immediately to prevent further theft
2. Call or visit your local county DHR office to report your benefits stolen
3. Complete and submit a Reimbursement Request Affidavit and supporting documentation

 For incidents occurring through Dec. 20, 2024, reports must be submitted within 30 days of the date the client discovered the fraud. Location and contact information for all 67 county DHR offices is available at dhr.alabama.gov/county-office-contact.

All reports of skimming, cloning, or similar fraud will require confirmation from the client verifying that all information reported in the request is true and correct. Clients may be contacted regarding their request. Clients who purposefully give false information may be prosecuted.

How to help prevent theft

DHR encourages EBT participants to safeguard their benefits with these tips:

1. Change your PIN often: Change your PIN at least twice a month, including right before your benefit issuance date and after each use if benefits remain
2. Avoid simple PINs: Do not use combinations such as 1111, 1234 or 9876 which are easy for others to guess
3. Keep your PIN and card number secret: Do not share your PIN or card number with anyone outside your household. Cover the keypad when you enter your PIN on a machine.
4. Beware of phishing: DHR will never call or text to ask for your PIN or card number
5. Check your EBT account regularly for unauthorized charges: If you see any, change your PIN right away to stop the thief from making new purchases. Report suspicious activity to your county DHR office.

EBT retail partners – please help

We are requesting our EBT retail partners to perform a daily check of card payment devices and scanners for signs of tampering or card skimming devices. DHR continues to work with our federal partners to investigate these thefts and to implement new security measures to prevent some of this fraud in the future.

Types of fraud eligible for replacement

Only the following types of fraud are eligible for replacement:

• Card skimming (when devices illegally installed on ATMs or point-of-sale [POS] terminals capture card data or record households’ PINs)
• Card cloning (when data captured by skimming are used to create fake EBT cards and then steal from households’ accounts)
• Other similar fraudulent methods (including but not limited to scamming through fraudulent phone calls or text messages that mimic official DHR messaging and phishing)

Requests for replacement benefits may be denied

Replacement requests may be denied in some cases in which there is insufficient evidence to support the request or the client’s request for replacement is outside the allowed scope, including:

• No transaction(s) exist
• Transaction(s) occur prior to 10/1/2022 or after 12/20/2024
• Transactions did not involve SNAP benefits (P-EBT benefits are not eligible for replacement)
• Household already received two replacement issuances for stolen benefits within the federal fiscal year
• Request not submitted timely

“We are asking the public to stay vigilant when shopping at retailers that accept EBT; if you see anything suspicious immediately report it to the retailer. These criminals are using sophisticated methods, and we ask retailers to work with us to shut these criminals down,” Alabama Department of Human Resources Commissioner Nancy Buckner said. “This is a horrible situation for our clients who are already going through tough times. Our team is working hard to process reimbursement claims timely and get our clients some relief, but we need everyone’s help to stop these criminals.”

SNAP is a U.S. Department of Agriculture (USDA) nutritional assistance initiative administered through the Alabama Department of Human Resources. SNAP benefits are 100% federally funded. The ability to reimburse SNAP benefits related to fraudulent activity is made possible by the federal Consolidated Appropriations Act of 2023. More information can be found at www.fns.usda.gov/snap/stolen-benefits.

For more information on replacement benefits related to fraud, ways to prevent benefit theft, and other tips, visit https://dhr.alabama.gov/EBT-fraud. 

A flyer with more tips is available at https://dhr.alabama.gov/wp-content/uploads/2023/04/Protect-Yourself-From-EBT-Skimming-Cloning-Scamming.pdf.