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very eye-opening piece here. i've never heard about the bolded part, which is particularly disturbing.
Quote:
A 4 On Your Side investigation has discovered the state’s food stamp program - meant to feed nearly half a million New Mexicans - is being abused by beneficiaries looking for cash in an underground black market.
Some individuals will trade food stamps for cash, often paying or accepting 50 percent of the remaining balance on a person’s state-issued EBT card.
She said the biggest issue is people who sell their EBT card and report it lost or stolen. Out of the 138,927 cards issued to New Mexicans in 2012, more than 93,000 were replacement cards, Squier said. That’s about 70 percent.
“We know that there are some people who lose them four, six or eight times, and it's pretty suspicious, but you can't do anything about it based on the federal rules,” she said. “They want people to have the cards - they want the card replaced.” 4OYS investigation uncovers food stamp fraud | KOB.com
so apparently you can claim you 'lost' your card, sell it for cash, demand another one... rinse and repeat.
you may now begin the cries of ''b.b.b.b.but that never happens!'
They don't know how to cancel the card and transfer funds? That sounds fishy or NM has a bunch of stupid people running the program. Most states give you an account and a card, if you lose the card your account isn't affected.
They don't know how to cancel the card and transfer funds? That sounds fishy or NM has a bunch of stupid people running the program. Most states give you an account and a card, if you lose the card your account isn't affected.
according to the article, they clearly know something fishy is going on but are required by federal law to replace the card anyway.
Quote:
“We know that there are some people who lose them four, six or eight times, and it's pretty suspicious, but you can't do anything about it based on the federal rules,” she said.
If they can't automatically shut down the account, this is a real problem. If that is the case, then those cards need to have a limit on how many replacements can be issued in a certain time period. For instance, two times in a one year period, with a painful process for exceptions to the rule, in case somebody really is that unlucky. The federal law needs to be changed.
according to the article, they clearly know something fishy is going on but are required by federal law to replace the card anyway.
It sounds like the cards are similar to prepaid debit cards, that type of card is the same as cash. I'm surprised the card program isn't more like a bank debit card. You call and cancel the card and the bank sends you a new one, but the funds are linked to you. I know other states have food stamp programs set up like that.
It sounds like the cards are similar to prepaid debit cards, that type of card is the same as cash. I'm surprised the card program isn't more like a bank debit card. You call and cancel the card and the bank sends you a new one, but the funds are linked to you. I know other states have food stamp programs set up like that.
Then whoever is in charge of the New Mexico foodstamp program should be fired for not adopting a similar program.
It sounds like the cards are similar to prepaid debit cards, that type of card is the same as cash. I'm surprised the card program isn't more like a bank debit card. You call and cancel the card and the bank sends you a new one, but the funds are linked to you. I know other states have food stamp programs set up like that.
i thought the whole premise behind EBT cards was to do just that - link the funds directly with the person. but that doesn't seem to be the case here.
even if it were, the interview with the convenience store owner shows how there are people very willing to help you get around that:
Quote:
While undercover, 4OYS investigative reporter Gadi Schwartz asked the gas station clerk if he would trade roughly $200 in food stamps for cash.
“Go get me two liter coke, Pepsi two liter whatever and give me $100, $200,” the clerk told Schwartz. “I pay you half cash. Bring it to me, You give me the receipt, I pay you half what you pay. Cash. You understand? It's like you spend $200 I give you $100 in cash.”
Ending the program is the only way to deal with the fraud.
02-22-2013, 07:51 AM
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n/a posts
Quote:
Originally Posted by Frank DeForrest
Ending the program is the only way to deal with the fraud.
Or we could, you know, address the issue without making people starve.
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