SUBJECT:
EBT SCAMS
DISCUSSION:
It has come to our attention that retailers are experiencing the following or similar EBT scams.
- Someone identifying themselves as an EBT vendor, FNS official, or third-party processor representative calls the store saying they need to test the EBT machine immediately or the store will be unable to process electronic transactions for the Food Stamp Program (i.e., the EBT machine(s) will be shut down). The person then asks the manager/owner to key-enter a card number and PIN to process a credit transaction, often more than one. This is not a test. The transaction is real; money is then transferred out of the retailer’s account and into a recipient’s EBT food stamp account. A second tactic has been to tell the retailer that they are due a credit and if they process a key-entered credit transaction using the card number and PIN the caller is providing, their account will be credited. At least 27 stores across the nation have been the victims of this scam.
- Retailers are being contacted by a company claiming that the store needs to purchase a new magnetic stripe card to update their EBT system. The cost of the card is anywhere between $139.00 and $169.00, and in some instances retailers are being told that the State will reimburse them. Retailers are told that the card is needed because the State can not read the EBT transactions or that the update will speed up the transaction process. This scam appears to be targeting only retailers using government issued EBT machines.
- A person contacted the retailer stating they are a collection agency indicating the retailer owed a bill for a box of cleaning strips for the POS devices. The retailer had a box they had not ordered, but had not opened the box. The box did have a company name, E-Network Business Solutions, and a Miami, FL address. A phone number on the box is 866-882-7266.
Please note that neither the USDA Food & Nutrition Service nor the State are liable for food stamp dollars lost or any other costs incurred due to these scams.
If a retailer notifies you they believe they have been a victim of one of these or other scams, or they have knowledge of other possible EBT scams or suspicious activity, advise them to contact their local FNS Field Office immediately. To find the field office in your area they can call 1-877-823-4369 or check the FNS web at: http://www.fns.usda.gov/cga/Contacts/FieldOffices/default.htm
NECESSARY ACTION:
- Review this memorandum with appropriate staff.
- If retailers contact you regarding a questionable contact that could be a SCAM, advise them to contact FNS immediately.