Michigan welfare fraud doubled from 2023-2024

Reported food stamp fraud and other welfare fraud in Michigan more than doubled from 2023 to 2024, according to the Michigan State Police Crime Dashboard and information obtained through open records requests.

Criminals steal from a $254 million monthly fund that is given to 1.4 million residents using outdated magnetic strip cards that can be subverted in a variety of ways.

Criminals can install fake versions of card readers that process payment cards, such as debit and credit cards, at gas stations, grocery stores and liquor stores.

In 2023, there were 351 crimes, 332 victims, 351 offenses and 345 incidents of welfare fraud throughout Michigan, according to the state police. The number of reported crimes more than doubled in 2024, with roughly 733 crimes, 703 victims, 733 offenses and 720 incidents. These statistics encompass all law enforcement agencies throughout Michigan, not just the state police.

In June 2024, criminals stole $250,000 from Michigan families through the SNAP program, CapCon reported in April. In one weekend of 2025, criminals stole $75,000 in SNAP benefits.

The Michigan State Police searched crimes by crime type, year, and county, Danielle Bunney, records resource analyst, told CapCon in an email.

Michigan health department employees were accused of stealing food benefits, according to a new lawsuit brought by a former state employee who says she was fired for reporting theft. Another records request that CapCon filed with the state health department is due later this week.

The Michigan Department of Corrections denied a records request seeking an internal report about state employees stealing benefits from the Supplemental Nutrition Assistance Program.

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Michigan suffered at least $14 million in SNAP fraud in 2024 and $31 million in 2015. Switching to chipped cards would cost $8 million, CapCon reported.

From 2023-24, SNAP fraud in Michigan jumped nearly 400%, CapCon reported.

The U.S. Secret Service investigates ATM and terminal skimming. The agency recommends using tap-to-pay or a chipped card to avoid being scammed by card skimmers.

About 70% of crime isn’t reported, Haywood Talcove, the CEO of LexisNexis Special Services Inc., told CapCon in an email.

“The Michigan State Police data show welfare fraud in Michigan more than doubled from 2023 to 2024 — but that’s only the crimes we know about,” Talcove told CapCon in an email. “The reality is far worse, because 70% of fraud is never detected or reported. Right now, law enforcement, human services, and federal agencies each hold pieces of the puzzle, but there’s no single, real-time system connecting them. We can fix this by modernizing eligibility systems, requiring statewide standardized reporting, and integrating agency data so suspicious patterns are flagged immediately. Better reporting won’t just give us a clearer picture of the problem — it will stop much of the fraud before it ever happens."

The Michigan Department of Health and Human Services appears to agree but won’t respond to a request for comment.

In April, Dwayne Haywood, senior deputy director of the economic stability administration, told Michigan lawmakers that Bridge Cards use outdated technology.

“I will be honest with you. That's one of the reasons why we are looking at updating the chip and the technology,” Haywood told the House Subcommittee on State and Local Public Assistance Programs.