Elon Musk warned that the United States may face “hundreds, maybe thousands” of fraud rings stealing taxpayer-funded benefits after a report highlighted organized networks targeting Supplemental Nutrition Assistance Program accounts through Electronic Benefit Transfer card skimming.
Musk Warns Benefit Fraud Runs Deeper
“There hundreds, maybe thousands, of fraud rings of almost every nationality stealing money from US taxpayers,” Musk wrote on X, replying to a WSJ post. Federal agencies have not independently verified his estimate. The Government Accountability Office says perpetrators range from individuals to organized crime groups, but it does not publish a nationwide count.
In April, the Justice Department charged five Romanian citizens in an alleged conspiracy to steal nearly $1 million in SNAP benefits in Ohio and California. Prosecutors said the group installed skimmers, captured EBT magnetic-stripe data and PINs, then encoded the information onto cloned cards.
GAO found that states replaced more than $320 million in stolen SNAP benefits for nearly 679,000 households between October 2022 and December 2024. The watchdog said the figure understates total theft because it covers only approved claims. Federal authority to replace benefits stolen after Dec. 20, 2024 expired.
Outdated EBT Cards Leave Security Gaps
GAO said most SNAP EBT cards lacked embedded microchips during its 2025 review, though chips are standard on commercial cards and can deter skimming. USDA is supporting state transitions to chip-enabled EBT cards and other security measures.
The Justice Department said in March that it had charged more than 50 defendants since 2023 in San Diego’s crackdown on organized EBT theft, many with Romanian ties. Authorities said more than $310 million was stolen from California EBT beneficiaries between June 2022 and January 2026.
Federal Cases Reveal Broader Fraud Methods
Benefit fraud extends beyond skimming. Federal prosecutors have brought cases involving stolen identities, fraudulent applications and retailer trafficking. In New York, prosecutors charged six people in an alleged $66 million SNAP fraud and bribery scheme. U.S. Department of Agriculture data in June also highlighted USDA’s scrutiny of SNAP payment errors, which are not the same as fraud.
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