December 17, 2024

Wyden, Fetterman Urge USDA to Stop Hackers and Fraudsters from Stealing Low-Income Families’ Food Benefits

Washington, D.C. — U.S. Senators Ron Wyden, D-Ore., and John Fetterman, D-Pa., urged the U.S. Department of Agriculture (USDA) to swiftly release its proposed rule to upgrade the security of electronic cards used by low-income families to receive food benefits at grocery stores. 

The USDA has not made any security upgrades to these cards since 2010. With older and more insecure magnetic strips remaining in Supplemental Nutrition Assistance Program (SNAP) Electronic Benefits Transfer (EBT) cards, criminals can take advantage of these flaws to steal food benefits from low-income families. The federal government repaid more than $150 million to SNAP theft victims from fiscal years 2023 to 2024. 

In the letter to USDA Secretary Tom Vilsack, the senators wrote, “Replacing stolen benefits, while critical, is not a sustainable solution. Rapidly issuing the proposed rule to modernize EBT technology will reduce fraud, enhance consumer protections, and ultimately save taxpayer dollars.”

The USDA recommended that states transition to EBT cards with EMV chip technology, which offer enhanced protections against unauthorized access and skimming. However, the USDA has not provided resources for states to make that transition. 

To stop card skimming, card cloning, and other similar frauds, the senators specifically recommend that the USDA: 

  • Issue the proposed rule immediately to upgrade EBT technology.

  • Remove USDA’s requirement that EBT cards include outdated and insecure magnetic strips.

  • Ensure the inclusion of EMV chip technology that better protects against hackers and scammers unlike magnetic strips.

  • Incorporate the Consumer Financial Protection Bureau (CFPB)’s financial data protection rights for EBT accounts, including:

    • Defining obligations, such as privacy protections and inclusive industry standards, for third parties wanting to access consumer data. 

The senators continued, “Protecting the food and data security of low-income families is a shared responsibility, and this modernization is a vital step toward ensuring their benefits and information are secure.”

In addition to Wyden and Fetterman, Senators Kirsten Gillibrand, D-N.Y., Amy Klobuchar, D-Minn., Elizabeth Warren, D-Mass., Peter Welch, D-Vt., are cosigners. 

Wyden has been a longtime advocate in making sure low-income families’ food benefits are secure against hackers and thieves. In March 2024, Wyden, Fetterman, and Senator Bill Cassidy, R-La., introduced a bipartisan bill to upgrade the security of electronic benefit cards to protect families against thieves stealing millions worth of vital food benefits. In June 2024, Wyden and his colleagues asked the CFPB to include EBT card users in a new data privacy rule protecting their financial services. In September 2023, Wyden and Congresswoman Suzanne Bonamici, D-Ore., introduced legislation to increase food security for Oregon college students by making SNAP benefits more accessible. In July 2023, Wyden and his colleagues introduced a bill to expand food benefits for Americans with medical expenses. 

The letter text is here.

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