OUR OPINION: New way to fight food-stamp fraud

[TexasTowelie]

SAN ANGELO, Texas — The federal food stamp program, administered by the U.S. Department of Agriculture, is perhaps the nation's most important nutrition program.

At an annual cost of $75 billion, food stamps helped feed 46.2 million Americans last year.

Unfortunately, the program is afflicted by a persistent and resilient form of fraud that undercuts its intent and credibility with the broader public.

Crooked retailers encourage food stamp recipients to trade their benefits for cash or ineligible merchandise such as liquor and tobacco, at a substantial markup. The recipient swipes the USDA benefit card and punches in a PIN number, as with a debit card. The government or a participating bank reimburses the retailer for the full price of what has been represented as legal merchandise.

http://www.gosanangelo.com/news/2012/mar/03/our-opinion-new-way-to-fight-food-stamp-fraud/?partner=popular

[dkf]

1. Can't they just buy something, return it and get the cash back anyway?

[TexasTowelie]

4. No, they are not allowed to do that.

From http://www.massresources.org/snap-store-owners-guide.html

You cannot give cash in exchange for SNAP food stamps.

You cannot give cash change for SNAP purchases. The amount charged to the customer's EBT account must be the exact amount of the food purchase.

You cannot give cash refunds for food bought with SNAP food stamps. Refunds must go to the customer's EBT account.

[exboyfil]

2. Is this really happening?

I am already hearing on this board that $5/day is insufficient. What are these families eating if even that meager amount is being redirected?

Maybe breakfast, lunch, and dinner at school is the solution with the corresponding amount cut from the food stamp budget. Right now I don't think school meals are counted against food stamps. How about offering meals at school for adults in lieu of some food stamp meals?

[Gormy Cuss]

6. Yes, it happens but the incidence is quite low. Calculate the loss using the numbers in the article.

A 75B program with fraud loss of 330 million means fraud loss accounts for less than half of a percent of expenditures (.44%) and not all of the fraud is as egregious as the type cited in this OpEd.

USDA has ALWAYS looked for ways to reduce fraud in this program. Here's a link to a recent announcement about fraud-reduction actions:
http://www.fns.usda.gov/cga/PressReleases/2012/0042.htm

[Incitatus]

3. How about mandatory jail time for these retailers?

They are defrauding the federal government. Clearly, simply taking away their ability to accept food stamps isn't punishment enough.

[saras]

5. In the real world, it's toilet paper as often as it is tobacco

just another "cadillac welfare mom" story. This doesn't "undercut" anything unless it's powered by the right-wing press.

Haven't we got anything important to work on?