Agencies lose $3.93 for every $1 of fraudulent activities targeting Supplemental Nutrition Assistance Program (SNAP) Agencies and Integrated Eligibility Systems (IES), according to the latest True Cost of Fraud™ Study conducted by LexisNexis Risk Solutions.
Meanwhile, those agencies hit by EBT skimming and account takeovers fared worse, with losses at $4.48 per dollar.
These fraud trends in integrated eligibility systems affecting SNAP, Medicaid, WIC, TANF, and LIHEAP were assessed in the extensive review. While the integration of the systems is beneficial for data sharing, it has introduced new vulnerabilities that the criminal world exploits. Integrated system fraud costs also increased to $4.04 per dollar lost, compared to last year's $3.85.
Domestic and international criminal organizations are heightening their activities using modern schemes like artificial intelligence and automated bots. Administering the program has become more challenging for officials when modern schemes are coupled with archaic agency systems and manual operations. The eventual delay in the applications processed harms both the caseworkers and beneficiaries as these people rely heavily on these vital services.
“SNAP has become more crucial than ever as millions of Americans face the dual crises of hunger and soaring food prices,” said Haywood Talcove, CEO of LexisNexis Risk Solutions Government.
Talcove observed a rise in highly sophisticated criminal tactics, with both domestic and international groups exploiting advanced technologies like artificial intelligence and bots to target critical government aid programs.
“Our latest study highlights the immense challenges agencies face—not only in preventing fraud but in modernizing systems to ensure that food assistance reaches those who need it most. As these threats evolve, so too must our defenses, because this is about more than just fighting fraud—it is about protecting the livelihoods of vulnerable families across the country,” he added.
The study also shows a significant gap in fraud prevention strategies since most agencies focus on post-issuance detection instead of preventive measures at an early stage. However, modernized systems integrated with fraud detection capabilities report better processing times, reduced fraud costs, and better experiences for both workers and beneficiaries, it was suggested.
Read the full copy of the study here.
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