Congress Declines to Fund Chip Cards as SNAP Theft Drains Benefits
Organized crime groups are stealing millions in SNAP benefits from recipients by exploiting outdated magnetic-stripe cards. Trump administration officials have portrayed many SNAP recipients as fraudsters, but statistics show recipients are more often victims. A microchip upgrade could block most of this theft, yet Congress has not funded it.
In October 2022, a Romanian organized-crime group used stolen SNAP account data and PINs to buy thousands of energy drinks at a San Diego Smart & Final. Court records and federal investigators tied the crew to at least 174 victims and more than $305,000 in purchases over three months.
Federal data show confirmed recipient fraud equals about $64 million annually, or 0.08% of issued benefits. By contrast, Propel data supplied to ProPublica indicate $470 million was electronically stolen from SNAP beneficiaries in 2025. A microchip upgrade could block most such theft, but Congress has not funded it.
If chip-enabled SNAP cards remain unfunded, recipients may continue bearing losses from stolen benefits, potentially worsening food insecurity and distrust in the program. Retailers and taxpayers could also absorb indirect costs. Conversely, funding the upgrade might reduce a major theft channel, though it would not address all fraud. The debate may shape how policymakers and the public view SNAP recipients—as victims needing protection or as suspects—affecting future program administration and political discourse.