A man made $1.5 million trading SNAP benefits for cash, and now he’s going to prison. What to know about EBT card fraud

In the latest sensational case of SNAP fraud, David Quinones of Chicago has been sentenced to four years and four months in prison for committing a federal wire fraud charge (1). Quinones induced SNAP recipients to trade EBT cards (also known as Link cards) for cash and other valuable items, which he then used to buy goods at retailers that accepted the cards, which he resold for a profit.

In total, Quinones was convicted of fraudulently obtaining over $1.5 million in SNAP benefits between 2018 and 2023, per a report from CBS News (2).

Reports of SNAP fraud are nothing new, and individuals trafficking their cards for cash can find a ready market online or in their own neighborhoods. Some reports are more sympathetic, noting that recipients trade SNAP benefits for the money they need to live (3). However, other reports suggest SNAP benefits are traded for criminal activity, including buying drugs and firearms (4).

Unfortunately, SNAP fraud is illegal no matter the intention. Here’s why profiting off your SNAP card can have larger, longer-term impacts on your ability to qualify for benefits, and how to protect yourself from this and other kinds of SNAP fraud that can rob you of your food security.

While selling EBT cards is a common form of fraud, it may not be the most prevalent. The Cato Institute lists it among its ‘Top Ten’ forms of SNAP fraud, but notes reports of retailers trading SNAP benefits for cash as its #1 form of fraud (5).

In spite of the increasing reports of these types of fraud, and the crime rings that benefit from it, government data shows the actual percentage of fraud in comparison to the number of people the program benefits is likely very small. The most recent analysis from 2012 to 2014 estimated that only 1.5% of benefits redeemed from the program were trafficked (6).

In an historical overview of food stamp fraud in Time magazine from the 1930s to today, food historian Emelyn Rude noted instances of fraud in the program have been few and far between, and were declining through the 2010s (7).

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Florida-based legal firm Leppard Law says SNAP fraud is treated severely, and in proportion to the amount of money stolen from the program (8). A first offense will usually result in a one-year disqualification from the program, which can have a significant impact on an individual’s food security. A second offense leads to a corresponding two-year disqualification, and a third offense means a permanent ban from the program.

Those who participate in large-scale fraud face fines and imprisonment, but even trafficking the relatively-small amount of $500 or more in benefits can result in a prison sentence. With these strict laws on the books, there’s little incentive for individuals and families to risk trading their benefits to scammers.

Saying no to offers to trade your EBT card for cash at a retailer, online or in-person is an obvious way to avoid committing SNAP fraud, but unfortunately this is not the only way that scammers target SNAP beneficiaries for their valuable cards.

Until recently, EBT cards didn’t have the industry-standard payment safeguards like chip-and-PIN that debit and credit cards do, which enabled skimmers — devices inside card readers that collect account information from the card’s magnetic stripe — to log the details of an EBT card and steal from SNAP recipients.

A report from the New York Times outlines how devastating this can be for those who depend on SNAP (9). One California woman lost over $4,000 in benefits linked to her card from a skimmer. She eventually received only $580 back, as federal law limits the victims of skimmers to receive only two months’ worth of benefits, regardless of how much they lose.

To protect your card from skimmers, change to a chip-and-PIN card as soon as it’s available in your state. If you’re still using an older card, be aware of how to spot skimming devices.

You should also check your EBT account regularly for unauthorized charges and report suspicious activity right away to your local SNAP office or the OIG hotline.

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Department of Justice (1); CBS News (2); News 3 WTKR (3); Florida Department of Financial Services (4); Cato Institute (5); Congressional Research Service (6); Time (7); Leppard Law (8); New York Times (9)

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.