Combating Benefit Theft: North Carolina's Proactive Approach

In a concerning development, North Carolina's Food and Nutrition Services (FNS) program has been the target of widespread fraud, with over $554,000 in benefits stolen since August 18th. The state's Department of Health and Human Services (NCDHHS) has been working tirelessly to address this issue, implementing measures to protect participants and recover the stolen funds.

Safeguarding North Carolina's Food Assistance Program

Uncovering the Fraud Surge

The recent surge in stolen benefits is directly linked to online transactions at BJ's Wholesale Club, disproportionately impacting FNS participants with higher account balances. NCDHHS has been collaborating with federal, state, and local law enforcement since October 2022, when FNS participants nationwide became the targets of criminal activity involving card skimming, cloning, and fraudulent transactions. This coordinated effort has led to the recovery of over $2.7 million in stolen benefits in North Carolina alone.

Proactive Measures to Protect Participants

In response to the escalating fraud, NCDHHS took swift action on September 6th, 2024, implementing a block on online transactions originating from Connecticut, Florida, and New York, which were found to be linked to the fraudulent activity. This decisive move effectively halted any further unauthorized access to FNS participants' accounts, safeguarding their hard-earned benefits.

Reimbursing Affected Participants

NCDHHS recognizes the significant impact this theft has had on FNS participants, and has put in place a straightforward process for individuals to reclaim their stolen benefits. Participants whose accounts were compromised on or before September 30th, 2024, can submit a signed affidavit to their county's Department of Social Services, either by mail, fax, in-person, or over the phone. Once the claim is processed, the participant will receive a new EBT card within 3-5 business days and have their replacement benefits restored the following calendar day.

Securing EBT Accounts: Recommendations for Participants

To empower FNS participants and prevent future incidents, NCDHHS has provided a comprehensive set of recommendations to enhance the security of their EBT accounts. These include regularly checking for unauthorized charges, selecting a "difficult" PIN, freezing the card when not in use, and blocking out-of-state and online purchases. Additionally, participants are encouraged to report any suspected card skimming to law enforcement and request a new EBT card at no cost.

Ongoing Collaboration and Vigilance

NCDHHS remains committed to working closely with federal, state, and local authorities to combat the ongoing threat of EBT fraud. The department's proactive approach, combined with its dedication to protecting FNS participants and recovering stolen benefits, demonstrates its unwavering commitment to ensuring the integrity and accessibility of this vital food assistance program.As North Carolina continues to navigate this challenge, the state's residents can take comfort in the fact that their food security is a top priority for NCDHHS. By staying vigilant, implementing robust security measures, and collaborating with law enforcement, the department is poised to safeguard the well-being of its most vulnerable citizens and maintain the trust in the FNS program.