EBT Manual

0150.055.00 FRAUD

EBT provides the state the opportunity to identify the fraudulent transacting of food stamp benefits. Analysis of benefit transactions can reveal the trafficking of food stamp benefits by the participant and retailer.

The Welfare Investigation Unit (WIU) is assigned responsibility for identifying and pursuing potentially fraudulent EBT benefit transactions. When WIU suspects retailer fraud, a referral is made to the USDA Food and Nutrition Service (FNS) for investigation and action against the retailer.

Once WIU compiles sufficient evidence to establish participant misuse of benefits, they pursue an intentional program violation (IPV) disqualification.

USDA-FNS also compiles information regarding participants and retailers who traffick food stamp benefits and sends referrals to the appropriate states.