Yuyun Lusiyani
It wasn’t the kind of call a grocery store typically receives. On October 19, 2022, a Smart & Final store in San Diego received an unusual request from a customer speaking with a distinct Eastern European accent: a bulk purchase of several thousand cans of Red Bull, to be picked up in a few days. The caller also inquired about equipment to move such a large quantity of energy drinks to two waiting minivans in the parking lot. This seemingly innocuous transaction would later be identified as a critical link in a sprawling, multi-state criminal enterprise that has siphoned hundreds of millions of dollars from the Supplemental Nutrition Assistance Program (SNAP), leaving vulnerable families without essential food assistance.
The Anatomy of a Heist: The Red Bull Crew and the Genesis of a Crisis
On the designated day, store employees facilitated the sale of 3,960 cans of Red Bull and 720 cans of Monster Energy to two men and two women, all sharing the same accent. The bill amounted to $10,747.05. The payment method was highly unusual: not traditional credit or debit cards, but 25 distinct plastic cards resembling hotel-room keys, each loaded with a different amount. The group took turns swiping these cards until the payment was complete, then swiftly departed.
In the days that followed, a wave of panicked calls inundated the San Diego store. Individuals from across the country, as far afield as New York and Florida, reported that their food-stamp accounts, containing their vital SNAP benefits, had been mysteriously drained at this particular San Diego location. This incident unmasked what federal investigators would later dub the "Red Bull Crew," a sophisticated criminal syndicate originating from Romania. The crew had acquired stolen SNAP account data and PINs from unsuspecting beneficiaries nationwide, using these funds to purchase massive quantities of energy drinks for resale online or to smaller retail outlets.
The San Diego operation was far from isolated. Court documents and federal investigations revealed that from September through November 2022, this same crew perpetrated at least $305,274.52 in energy drink purchases, victimizing at least 174 SNAP recipients across the United States. This elaborate scheme highlighted a critical vulnerability in the nation’s food assistance infrastructure, a vulnerability that continues to be exploited on an alarming scale.
A Growing Epidemic: The Staggering Cost of EBT Theft
While the Trump administration, through figures like Vice President JD Vance and Agriculture Secretary Brooke Rollins, has frequently propagated a narrative of widespread fraud committed by SNAP recipients – alleging beneficiaries drive luxury vehicles like Lamborghinis, Bentleys, Ferraris, and Maseratis – federal government statistics paint a starkly different picture. Confirmed cases of intentional program violations by SNAP recipients, categorized as fraud, account for approximately $64 million annually, a mere 0.08% of all benefits issued. This figure stands in stark contrast to the administration’s public rhetoric, which often implies a systemic abuse by beneficiaries.
However, a far more insidious and financially devastating fraud wave has surged over the past five years: organized electronic theft from SNAP recipients. Data provided by Propel, a company offering a mobile app for SNAP beneficiaries to manage their accounts, reveals that in 2025 alone, an estimated $470 million was electronically stolen from beneficiaries. This staggering sum not only deprives food-insecure families but also represents a significant loss to U.S. taxpayers. Last year, over 990,000 households receiving food assistance had their benefits stolen. The reliance on private company data underscores a critical failing: the federal government has ceased tracking the rates of this pervasive crime, obscuring the true scope of the problem.
ProPublica’s extensive investigation, involving nearly 100 victims, federal prosecutors, Secret Service agents, USDA officials, and caseworkers, reveals the profound human impact of this theft. Victims are predominantly working individuals with families or retirees who already struggle to afford groceries in the current economic climate. Many discover the crime only when their benefit card is declined at the checkout line, often at their most vulnerable. The immediate aftermath is devastating: "The only thing they said was that [my benefits] cannot be refunded unless they were lost due to a natural disaster," recounted one Ohio victim. Another in rural Oregon was simply told, "They told me they’d add my name to the list." Adding insult to injury, a victim in Virginia reported being charged $2 for a replacement card after their benefits were stolen.
The Vulnerability of EBT: An Outdated Technology
The root cause of this exploding fraud wave lies in an outdated technology. SNAP theft is not a new scheme but rather an old one repurposed for a new target. For years, scammers employed skimming devices on card readers at ATMs, gas pumps, and corner stores. These devices covertly read card data as individuals swiped, while pinhole cameras or overlay keypads captured their Personal Identification Numbers (PINs). The pilfered data was then used for online purchases or loaded onto cloned cards for cash withdrawals.
The financial industry largely mitigated skimming fraud in the 2010s with the widespread adoption of digital microchips and tap-to-pay technology for credit and debit cards. These advancements made it exponentially more difficult for skimmers to extract sensitive information. However, one crucial type of card was left behind: Electronic Benefits Transfer (EBT) cards. Used to access SNAP and other public assistance, EBT cards still rely on the magnetic-stripe technology of the 1960s, making them highly susceptible to skimming.
While the average monthly SNAP benefit of approximately $350 per household might not seem a high-value target compared to bank cards, funding boosts during the pandemic temporarily increased benefit amounts. This, coupled with the ease of exploiting the magnetic-stripe technology, incentivized organized criminal teams, often run by Romanian gangs, to pivot their operations. With cloned magnetic-stripe EBT cards, they began purchasing large quantities of SNAP-eligible products like energy drinks and baby formula – items that are easily stored and resold for profit.
"We’ve started many, many briefings saying that one of the biggest ways we’re going to fight this is to just get chips in the cards," stated Michael Peck, Assistant Special Agent in Charge of the Secret Service’s Criminal Investigative Division. The Secret Service, whose lesser-known functions include investigating financial crimes, has consistently advocated for chip-enabled EBT cards on Capitol Hill, presenting this message in committee meetings and to individual members of Congress.
Political Inertia: Congress and the USDA’s Stance
Despite universal support for chip EBT cards among Democrats and significant backing from Republican rank and file, congressional leadership has repeatedly blocked legislation that would fund a national upgrade. House Committee on Agriculture Chairman Glenn Thompson, a Pennsylvania Republican, acknowledged at a March hearing that chip technology is "very effective." Yet, he subsequently shut down a bipartisan proposal to upgrade EBT cards, citing unspecified budgetary constraints. A committee aide, speaking on his behalf, stated that while "there was an appetite" for this reform among Republicans, Democrats were unwilling to "find the budgetary offsets."
The Congressional Budget Office has yet to formally score the proposal, but multiple Hill staffers estimate the total cost of upgrading EBT cards nationally would be around $215 million. This figure pales in comparison to the estimated $600 million-plus annual loss from the theft of SNAP and other benefits, suggesting that the upfront investment would yield substantial long-term savings and protect millions of vulnerable Americans.
The current administration’s stance has further exacerbated the problem. Vice President JD Vance, upon being named "Fraud Czar" in the spring, reiterated claims that "There are people who have Lamborghinis who currently receive SNAP benefits." Agriculture Secretary Brooke Rollins frequently uses public platforms to assert that masses of SNAP recipients are scamming the system, driving luxury vehicles. This rhetoric, while politically charged, diverts attention and resources from the actual, large-scale organized theft from beneficiaries.
The Retreat from Reimbursement: Victims Left in Limbo
Adding to the plight of victims, the federal government has recently abandoned a crucial effort to compensate those whose benefits were stolen. From late 2022, the federal government had been replacing stolen funds, mirroring the requirement for banks to reimburse debit card fraud victims. This program provided a vital safety net, with 753,929 households receiving compensation.
In December 2024, a bipartisan spending agreement, which included a provision to extend these reimbursements through 2028, was on the verge of becoming law. However, Elon Musk, controversially named a leader of the new Department of Government Efficiency, launched a relentless attack on the legislation on X, advocating to "defund everything." Following Musk’s public campaign, then-President Trump ultimately sank the deal. The immediate consequence was devastating: victims of SNAP theft can no longer get any of their benefits replaced. With the government no longer liable for these losses, a significant incentive to invest in a preventative solution has been removed.
In the 22 months since this decision, the Trump administration has systematically stripped funds for addressing EBT theft from the USDA’s annual budget requests to Congress. Simultaneously, at least 650 staff members of the federal Food and Nutrition Administration (FNA), the sub-agency overseeing SNAP, have been cut. More than half of the technical experts hired by the agency to develop EBT card security guidance have been pushed out, according to the Government Accountability Office.
Kym Ayodeji, a former data scientist in the SNAP program, who departed this spring, lamented the loss of institutional knowledge and ongoing projects. "Many of us who were working on fraud, we’ve left the federal government entirely," she stated. Ayodeji and her colleagues had been developing sophisticated data tools to identify retailers with unusually large purchases of specific items or addresses receiving purchases made with numerous EBT cards – critical insights for detecting fraud. However, these initiatives have been indefinitely delayed due to firings, early retirements, agency reorganizations, and government shutdowns.
Federal Agencies on the Front Lines: A Policy Problem Met with Enforcement
Absent decisive action from Congress or USDA leadership, the burden of combating EBT theft has largely fallen to the Secret Service, treating what is fundamentally a policy problem as a law enforcement issue. Agents initially focused on pursuing gangs like the Red Bull Crew, often through painstaking hours of grocery store surveillance footage. More recently, their strategy has shifted to proactive intervention: heading to cities experiencing EBT theft attacks and conducting store-to-store checks for skimming devices. Since April 2024, the agency has conducted over 70 such operations, independent of any White House initiative.
During an operation in August in Burbank, California, a Secret Service analyst was photographed meticulously removing an overlay from a convenience store’s card reader. These proactive checks are led by Assistant Special Agent in Charge Michael Peck, who, despite his stoic demeanor, emphasizes the vulnerability of the victims. "The U.S. has been fighting the War on Drugs and the War on Terror for how many years?" he questioned, highlighting the persistent nature of such battles. "We are pushing hard and we’re doing all we can with the resources and abilities that we have."
A vivid illustration of these efforts occurred one morning in late June, when dozens of law enforcement officers convened in a Secret Service meeting room in downtown Brooklyn. The multi-day New York operation saw officers intercepting and arresting two foreign nationals actively installing a skimming device. Teams of three or four were then dispatched to dozens of stores in Brooklyn and Queens, disproportionately targeting ethnic and dollar stores, as well as larger chains like 7-11, based on data analytics indicating high probabilities of skimming activity.
Upon entering a store, analysts would identify themselves, request permission to inspect card readers, and distribute flyers in four languages advising cashiers on how to spot skimming devices. When a device was found, agents, donning gloves and masks, carefully pried it off, bagged, and tagged it for DNA, fingerprint, and digital forensic analysis, hoping to establish links to larger EBT theft rings.
While these missions are undoubtedly well-intentioned and every removed skimmer prevents families from being deprived of food, the method is inherently inefficient. Over two years, the Secret Service has dedicated tens of thousands of staff hours to checking 69,805 point-of-sale terminals, 42,972 gas pumps, and 10,661 ATMs, uncovering 637 skimming devices. As one agent candidly admitted, "There could be a new skimmer on there tomorrow." This highlights the limitations of an enforcement-only approach against a fluid and technologically exploitative crime.
State-Level Innovation Amidst Federal Cuts
Given the federal stalemate, some states have taken the initiative to adopt chip cards independently. California has nearly completed its transition, and Alabama and Oklahoma began rolling out new cards this year. A handful of other states initiated the process in recent months. However, this progress is now imperiled by the "One Big Beautiful Bill Act," which, starting October 1, cut 50% of states’ administrative funding for SNAP. This drastic reduction means that states like Alabama, which had tapped these funds for chip technology transitions, have likely missed their window unless Congress intervenes.
The remaining approximately 40 states are also awaiting crucial regulatory guidance on EBT card security and chip card implementation, which the USDA has claimed to be developing for nearly four years. The USDA Office of Inspector General has explicitly found that the agency’s failure to issue this guidance has enabled the theft of at least $555 million in SNAP benefits.
Moreover, state-level SNAP administrators are overwhelmed by the hundreds of new requirements imposed by the "One Big Beautiful Bill Act." The law mandates intensive new work requirements for older adults and others, generating voluminous additional monthly paperwork. Federal funds are slated for further cuts next year if states fail to reduce their "payment error rate," a measure of unintentional over- and underpayments. Juggling these mandates, many state officials have told ProPublica they have put chip card implementation on hold to prioritize compliance with the Trump law – ironically, a law whose ostensible goals included reducing fraud. All the while, this legislation has cut food aid for over 1.2 million children, and USDA Secretary Rollins has stated that nearly 6 million people in total have been "moved off SNAP" during the current administration.
The Human Cost: Stories from the Front Lines of Poverty
The White House declined to respond to a detailed list of questions regarding these issues. A USDA spokesperson, in an emailed statement, did not dispute Rollins’ focus on individual recipient fraud over EBT theft, but dismissed ProPublica’s findings as "cracks in public statements screams politics, not fact-finding." The statement also failed to address the agency’s reported failure to deliver solutions for EBT theft, instead pointing to collaborative efforts with the Department of Justice in combating retailer fraud. While the USDA claims to have cracked down on thousands of stores abusing SNAP privileges, this action does not address the fundamental vulnerability of the EBT system itself.
State and county SNAP caseworkers express deep frustration. Since the reimbursement program was halted by Trump and Musk, their ability to assist victims is severely limited. All they can offer is advice to change PINs more often and perhaps report the crime to local law enforcement. "It is a short conversation," explained Norman Vogele, a caseworker in Oregon. The date and amount of the crime are recorded, but as Vogele noted grimly, "It isn’t clear why we even do that much, as there is zero recourse." This lack of recourse leaves families facing impossible choices, often going without food or struggling to make ends meet after their lifeline has been abruptly severed.
Beyond Enforcement: The Path Forward
The Red Bull Crew eventually faced justice, with all but one member arrested after hundreds of hours of Secret Service surveillance, federal prosecution, and local authority collaboration. They served sentences ranging from one to three years, and some may have been deported. However, the cycle continues. Every day, new SNAP theft sprees emerge in different corners of the country. A Secret Service official, reflecting on the pursuit of street-level operatives, sounded a somber note: "You can arrest them. But essentially once you take them off the street, there’s 10 more that are doing the same thing." This sentiment underscores the futility of an enforcement-only strategy without fundamental policy reform.
Prospects for funding chip EBT cards on Capitol Hill remain dim, according to both Democratic and Republican lawmakers and staffers. This is despite newfound support from major retailer associations and industry giants like Walmart, who recognize the widespread impact of this fraud. While a chip card provision exists in the Senate’s draft Farm Bill, the entire package is embroiled in a partisan dispute over the "One Big Beautiful Bill Act’s" SNAP funding cuts, likely delaying any action until well after the midterm elections. Crucially, the House-passed version of the Farm Bill contains no funding for chip cards. Furthermore, repeated bipartisan proposals from Senator John Fetterman of Pennsylvania and others to renew the reimbursement program for victimized families have seen no movement.
Implementing new payment technology on a national scale is not without its challenges. States like California, Alabama, and Oklahoma have had to phase in their new cards gradually, ensuring magnetic stripe functionality remains available while merchants update their card readers. They have also invested in notifying rural convenience stores and gas stations and assisting smaller bodegas to upgrade their systems, preventing a scenario where beneficiaries are left with chip cards but no compatible readers.
Despite these complexities, the results in pioneering states are compelling. California, through its phased chip card rollout and enhanced data tools, has reduced the theft of food and cash benefits by an impressive 83% in just two years. Alabama officials claim their state has not recorded any confirmed EBT theft cases since they began distributing chip cards this year. These successes demonstrate that a proven, effective solution exists.
However, chip cards are not a panacea. Scammers will inevitably seek new vulnerabilities. Moreover, SNAP recipients are largely denied basic security services that banks and credit card companies routinely offer to block fraudulent transactions in real time, such as email or text alerts for suspicious purchases. Without federal assistance, states would have to bear the cost of implementing these additional security features individually. Most have resorted to cheaper, less effective options like advising recipients to change their PINs regularly or lock their cards when not in use – useful stopgaps that demand constant vigilance from an already vulnerable population.
Ultimately, the ongoing EBT theft crisis is a stark illustration of a systemic failure: a policy problem, with a clear, cost-effective solution, being ignored amidst political rhetoric and bureaucratic inertia. While organized criminal syndicates continue to exploit outdated technology, millions of food-insecure Americans, many of them working families and retirees, are left to bear the devastating financial and emotional brunt, with little hope of recourse. The choice facing Congress and the USDA is clear: continue to allow hundreds of millions of dollars to be stolen annually, or invest in a modern, secure system that protects both taxpayers and the nation’s most vulnerable citizens.
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