Congress Blocks Chip Upgrade That Could Stop Multi-Million Dollar SNAP Theft

Federal investigators have uncovered a nationwide scheme in which transnational gangs, primarily of Romanian origin, skim data from SNAP EBT cards and use the information to purchase large quantities of energy drinks and other eligible products, stealing at least $470 million in 2025. The scheme exploits the magnetic-stripe cards still used for SNAP, a technology vulnerable to skimming devices that capture card data and PINs.

Law-enforcement agencies, including the Secret Service, have advocated for a chip upgrade that would block most theft, a measure backed by both parties but repeatedly rejected by the House Agriculture Committee over budget concerns. The proposed upgrade would cost roughly $215 million, far less than the annual $600 million loss. After Congress eliminated a reimbursement program in late 2024, victims—mostly working families and retirees—receive no refunds and are advised only to change PINs or avoid suspicious merchants. State pilots in California, Alabama and Oklahoma show chip cards can cut theft by up to 83 percent, but most states await federal funding and guidance.