SNAP Theft in New York: Legal Action Demands Chip Card Implementation After $80 Million Stolen
By Jie Jenny Zou | New York Focus
This story originally appeared in New York Focus, a nonprofit news publication investigating power in New York. Sign up for their newsletter here.
A Heart-Wrenching Loss
It took nearly four months for Anna Gelman, a 90-year-old Brooklyn resident, to recover $318.83 in stolen food assistance benefits. Tragically, just one day after she was reimbursed, her benefits vanished once again.
Now, Gelman is out $409.05, with congressional inaction preventing further refunds. This incident is not an isolated case—but part of a troubling pattern affecting thousands of New Yorkers who rely on the Supplemental Nutrition Assistance Program (SNAP).
Rising to a Challenge: The Lawsuit
Gelman is one of eight plaintiffs in a federal lawsuit filed against the New York State Office of Temporary and Disability Assistance (OTDA), which manages SNAP across the state. "I’m very angry; I don’t understand why the state doesn’t do anything," Gelman expressed, speaking for many who share her plight.
Image credit: example
The Alarming Rise of Skimming
New York has become a hotspot for a malicious practice known as skimming, where thieves install deceitful devices at retail registers to compromise payment cards. With over $80 million in stolen benefits reported since 2022, it is clear that immediate action is required.
According to the US Department of Agriculture, nearly 3 million New Yorkers benefit from SNAP, with an average household receiving $376 monthly. The current lawsuit, initiated by Legal Services NYC, demands that the state transition to more secure card technology and compensate victims for their losses.
The Urgency for Change
“We saw an increasing number of clients facing SNAP skimming issues,” remarked attorney Alison Roberts, emphasizing that the state has neglected its duty to protect vulnerable citizens from recurrent theft, thereby exposing them to food insecurity and financial distress.
OTDA declined to comment on the pending litigation, creating an atmosphere of frustration and uncertainty. For years, advocates have urged state officials to adopt encrypted chip cards, yet progress has languished. Instead, other states—like California, Oklahoma, and Maryland—are already stepping up to implement these crucial upgrades.
A Broken Safety Net
In 2023, Congress attempted to establish a limited reimbursement system for stolen SNAP benefits, but funding unexpectedly dried up, leaving many without a safety net. With no refunds in sight, beneficiaries like Gelman are forced into impossible choices—prioritizing food over basic necessities like housing.
“I was unable to purchase Kosher foods for Passover or celebrate Hanukkah,” Gelman lamented. At 90, she yearned to buy a new blouse for her birthday—a small indulgence she hadn’t enjoyed in over a decade.
A Community in Crisis
Many families are feeling the fallout. Yiraldy Rodriguez, another plaintiff, had to borrow money from her mother after losing $800 in SNAP benefits in late 2023. Relying on SNAP to feed her two daughters, she expressed anxiety over the possibility of losing more benefits without the hope of a refund.
The Broader Impact of Legislative Decisions
As food insecurity looms over many communities, Congressional actions threaten to exacerbate the crisis. Proposed cuts to SNAP could force New York to bear billions in federal costs and impact over half a million residents.
Time is Running Out
Advocates and policymakers are in urgent discussions about adopting chip cards as a safeguard against theft. Organizations like the Empire Justice Center have implored the state to renegotiate its contracts for a much-needed tech upgrade.
However, New York is currently locked into a seven-year, $69 million contract that extends until September 2030. In the absence of clear timelines or commitments from the state, progress remains slow, devilishly frustrating the very individuals who rely on these benefits to survive.
Looking Ahead: A Call to Action
Emails reveal ongoing discussions about a potential shift to chip cards dating back to 2022. Yet, despite early interest, momentum seems to have stalled. If New York fails to act soon, it risks falling further behind states already implementing more secure technology.
Barbara Guinn, the OTDA Commissioner, acknowledged that transitioning to chip cards could cost upwards of $40 million—an expense the state struggles to budget amidst increasing federal burdens.
Roberts remains hopeful that this lawsuit will spark the state into action. “There’s a level of uncertainty and fear around losing SNAP benefits that weighs heavily on people,” she noted.
The Final Word
As this unfolding crisis continues to impact vulnerable communities, it is vital to stay informed and advocate for the necessary changes to protect our most marginalized citizens.
For more information on how to support this cause and advocate for change, follow the ongoing coverage on New York Focus.
As the curtain raises on a potential legal battle, the question lingers: Will New York finally act to secure its most vulnerable citizens? Only time will tell.
