Fake card readers, real damage: Inside Michigan’s EBT crime campaign

When criminals attacked Michigan’s Supplemental Nutrition Assistance Program in fiscal year 2024, they stole more than $14 million in food assistance benefits, according to a document obtained through a records request.

More than 1.4 million Michiganders receive state-issued Bridge Cards to buy food at more than 10,000 approved retailers. Organized criminal rings target these cards and retailers with fake card readers, known as skimmers, that steal account data and drain benefits, with taxpayers footing the bill.

The Michigan Department of Health and Human Services and federal partners say they’ve fought back by seizing 44 skimmers at gas stations, grocery stores and liquor stores, protecting $16 million in benefits and 76,000 accounts, according to documents obtained through a records request. In 2024 alone, Michigan replaced more than 269,000 lost, stolen or compromised Bridge Cards, allowing up to four replacements per household before it requires an explanation.

“EBT card cloning is a serious and pervasive crime often involving organized and violent criminal organizations,” according to a health department document.

2025EBTFRAUD by mcclallen on Scribd

Among the report's findings:

• $14.1 million in food assistance fraud identified from recipients.

• 3,678 fraud referrals and 473 cases sent to prosecutors.

• 60 fraudulent terminals blocked in 2024.

• Nearly $20 million saved by catching people collecting benefits in multiple states.

SNAP fraud jumped by nearly 400% between 2023 and 2024, CapCon reported exclusively, but enforcement barely budged.

The department’s Benefit Trafficking Unit, staffed by six agents with mobile equipment, investigates a wide range of fraud — from individuals selling benefits on social media to retailers reselling stock bought with stolen benefits. One investigation revealed that a retailer used multiple Bridge Cards to purchase $7,100 of goods for resale.

Some fraud probes uncover darker crimes. In one case, an agent noticed benefits being used from the card of a person reported missing. When confronted, the user confessed to killing the missing person and revealed the body’s location.

SNAP-related fraud is much more sophisticated than street crime. Criminals now clone terminals used at big-name retailers like Walmart, Sam’s Club and Costco, using account numbers stolen from federal systems.

Michigan has made progress in shrinking food stamp fraud. In fiscal year 2024, the state permanently disqualified 13 retailers from the program, suspended 20 others and fined 21 for violations.

The state health department has also sent more than 1,500 warning letters to households exceeding card replacement limits. It also uses robocalls and texts to notify cardholders when their accounts are compromised.

The agency did not respond to multiple requests for comment. CapCon is the only news outlet statewide that has reported on rampant SNAP fraud in Michigan. If you’ve had SNAP benefits stolen, please reach out to CapCon