Say investigators of welfare fraud

The state of California has something that most of us probably already have in our wallets: plastic cards with a security chip. You know, those with whom you can insert or tap to pay them in the register. But the goal is security, not convenience.

The California Ministry of Social Services hopes that the new cards will keep the thieves from the accounts of 3.2 million Californians that rely on its performance programs to keep a roof over the head and food on the table.

From this month, 405,515 people in San Diego County are part of the Calfresh program and will be exhibited the new maps by June. In a press release, the district claims that this update makes welfare money “much less accessible to thieves and is more difficult to steal …”.

However, fraud investigators who work in the welfare offices in California said that the card will probably not do much dent. They said the state should have introduced a security chip years ago and a tap-to-play-tap-to-TAY-TAP-TAP-TAP chip, and that these new maps still contain technology that are outdated for up to several decades.

In the last two full calendar years, officials from the San Diego district have stolen at least 34.6 million dollars from EBT cards, according to criminals. The taxpayers then paid this money again to refund the families in need they had targeted.

Greg Mahony and Shawn Ferris have 75 years of experience in examining cases like this. They asked NBC 7 investigations not to identify their district employers so that they could speak freely. You spoke to us as members of the California Welfare was investigators association. Mahony is his president and Ferris his vice president.

“… what I see is a hurry to get a chip card out as soon as possible, and that will stop the entire fraud,” said Mahony.

NBC 7

NBC 7

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Thefts that are bound by European operations for organized crime

Demanding transnational crime rings have caught a considerable part of California's performance dollar. Recently, federal and international law enforcement officers have made top-class arrests and law enforcement of the Romanian nationals.

“This is the really bad part of it,” Ferris told NBC 7.

Last year, the US law firm in San Diego brought seven foreign nationals to the judiciary. This included six Romanians and an Italian. Everyone is guilty and convicted of about half for prison.

“It is actually much larger than anyone else imagines,” said Mahony.

Only last month, Romanian agents of the management served to investigate organized crimes and terrorism dozens of arrest warrants in two Romanian cities and took 11 people in custody. The FBI said that the crime “benefited well” by aiming to the families in California and drained their EBT cards.

Agents with Romania's Diicot attack two houses associated with social fraud examinations. You say you have confiscated money and cloned EBT cards.

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The investigators say that the state is not doing enough to prevent thefts

“The state of California has no idea what the fraud rate is,” Ferris told NBC 7.

Ferris' Group has followed the California Ministry of Social Services for years in order to better pursue welfare theft. At the moment, the state only counts how much money it is reimbursed what the police are far less than the thieves stole. This is not the only factor that makes the way the state of EBT -theft artificially lower than reality calculates:

• The reimbursements are not limited more than two months of the recipient, even if thieves have stolen more money than this
• ATM withdrawals, which are characterized by the district offices, are not included
• Stolen performance money, which is reclaimed by law enforcement authorities, is not included
• Refunds to EBT card holder who have incorrectly reported theft
• EBT -theft claims for reimbursement rejected
• Untermined EBT cards

“If you can ever get a grip on how much is lost, you will look terrible,” said Mahony. “And is that one reason why they don't pursue a fraud? I don't know, but it certainly sounds suspicious to me. “

The California Ministry of Social Services rejected a statement when it was asked for an answer to the criticism that it was not properly pursuing EBT theft or social fraud.

Already in 2018, Mahony said, he and other police officers had met with CDs. They warned the state that its performance cards were too easy. Mahony said a top CDSS officer agreed, but she still exhibited California. Then, three years ago, Mahony said that he had returned to CDSS and asked the state to add at least one security chip.

“The first answer I remember is:” It is too expensive to do, “said Mahony. '' We can't spend the money. It is too expensive to do. '”

Finally the state came by. Between 2023 and 2024, California rated 76.5 million US dollars in federal and federal money to switch to chip and tap cards.

But now that the state is finally doing it, Mahony said, criminals have been easy years ahead of us.

Chip cards make transactions appear without transferring credit card numbers to providers and their machines. However, the new Chipped EBT cards still contain a big susceptibility: the magnetic strip on the back, which is still unprotected against skimmer devices. If a blow occurs, the device can see accounts, card numbers and even pin codes.

NBC 7

NBC 7

“You are 20 years behind the technology that you put on these new cards,” Mahony told NBC 7. “And for me it is just a waste of money.”

California officials have defended the strip on the back of his EBT cards by pointing out the restrictions of the welfare card for federal cards. These rules require that the EBT card in California complies with many retail checkouts, including those that may not accept chips. However, the investigators say that these federal standards should be viewed as the mere minimum standard – a standard that the state has to exceed by investing in the update of their cash register and/or in the innovation of a safer wiping parts.

The California Ministry of Social Services rejected NBC 7's request after an interview in front of the camera. In an explanation, however, a spokesman partially said: “CDSS takes the problem of benefit theft seriously and has worked on eliminating the situation since we became aware of it.”

The entire answer can be read at the end of this article.

“It is our Tax money we observe go out of the door, ”said Mahony. “It is our tax money that is stolen. We investigate crimes in which we are also affected. So we are irritated. We see the loss. And when we get a attitude back that says, we cannot do anything about it – this is your job and your responsibility for it. This is a failure at the social service level. “

The district's group said that the fraud problem was greater than the EBT cards. The investigators say that the state has to better manage who can get a card at all. You say that this brings back to face and an ID form is required to apply. Is currently not required in California.

“Our goal is not really to make it more difficult or to take people the opportunity to achieve the advantages,” said Ferris. “Our goal is really to ensure that the advantages reach the right person.”

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The effects on Californians that rely on these advantages

NBC 7

NBC 7

Any disorder of the power flow can be catastrophic. NBC 7 examinations spoke to several people who were victims of EBT theft in the San Diego district.

“This card means a lot to me because it literally kept me alive,” said a woman.

She stayed by the district of Kearny Mesa after the money had disappeared from her account.

“34 dollars on my card,” she said. “So, yes, we will get along with what we can and survive.”

While she trusted that the county would reimburse her, she knew that the money would not come immediately.

Mahony said it usually takes about 10 days to reimburse a victim of EBT theft. Since the counties have reported more than 20 million US dollars a year, this cash flow can take much longer.

“We could be on the road for six weeks! Eight weeks! Now their rent is due, they have no rental money and now they are being driven out, ”Mahony told NBC 7.

“As soon as you have spoken to someone who has lost everything and is not sure where he will get his next food, despite all the obstacles, do it,” said Ferris. “Someone has to fight back.”

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Explanation of the California Ministry of Social Services

The California Ministry of Social Services takes the topic of benefit theft seriously and is working to tackle the situation since we became aware of it for the first time.

In California, many security net services are managed at the district level. This includes food advantages (CalfreshThis is our version of the Supplemental Nutrition Assistance Program) and cash performance (advantagesCalworksThat is our version of the temporary support for needy families).

EBT card holder in California is currently receiving new chips and taps on EBT cards in the mail. More As 3.2 million chip and tap cards can be distributed between now and June 2025.

The CDSS encourages card holders to update their mailing address information about those Advantages Website. Card owners can also receive a new EBT card by visiting A local district office. All existing services are automatically transferred to the new EBT card and the user pencils remain the same. Old EBT cards can still be used at this time. However, you will be deactivated 180 days after the new EBT card was issued.

Land circles – manage the advantages – continue to reimburse the victims of theft to ensure that the Californians have access to important advantages. The counties replace electronically stolen services that are entitled to reimbursement within 10 working days. Depending on the specific details of each claim, the process can take longer. In this case, the customer should be notified by the district. Financing for reimbursements comes from the state.

Every card holder who suspects that he has become the victim of theft Contact your local district office. Card owners can also contact the EBT customer service line at (877) 328-9677 to cancel their EBT card and demand a new one.