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The Alarming Surge in SNAP Fraud Costs

In a recent study carried out by LexisNexis® Risk Solutions, the findings showcased a staggering escalation in the costs associated with Supplemental Nutrition Assistance Program (SNAP) fraud. According to the report, for every dollar lost to fraud, SNAP agencies now incur an overwhelming $4.14 in additional costs. This marks an increase from $3.93 reported the previous year, indicating a worrying trend that has developed alongside the rise in digital and EBT schemes.

Accelerated Fraud Rates

The study, which is the fourth annual True Cost of Fraud™ Study addressing SNAP agencies and Integrated Eligibility Systems (IES), highlighted that the average monthly fraud applications and post-issuance cases have doubled since 2024. This surge can be attributed to expanded digital access and sophisticated multi-program eligibility systems creating new avenues for criminals to exploit.

Amanda D'Amico, Senior Director at LexisNexis Risk Solutions, emphasized the critical nature of this lifeline for many families, stating, "These findings highlight how increasingly sophisticated criminals are targeting this critical benefit program." The accelerated shift towards digital transactions, while improving accessibility, has also expanded the potential target for fraud attacks.

The Digital Dimension

Data reveal that digital channels are responsible for nearly half of all fraud costs, indicating a substantial threat that agencies must contend with. Notably, agencies that reported high volumes of online applications also faced disproportionate fraud losses, signaling the need for enhanced security protocols around digital applications. Scammers are now employing stolen identities in addition to utilizing unauthorized point-of-sale terminals, leading to EBT account takeovers, card skimming, and cloning.

The Multi-Program Functionality

The integration of multiple programs under IES, including SNAP, Medicaid, and others, has opened up further vulnerabilities. Fraud costs rise sharply in these systems, reaching $4.18 per dollar lost when multiple programs are involved, and peaking at $4.55 when five or more programs are integrated. This escalating complexity enhances the opportunities for fraudsters and complicates the roadmap towards efficient fraud prevention.

Collaborative Solutions as Remedies

Interestingly, agencies that enhance collaboration through cross-sharing of data and cross-training of staff have managed to mitigate their fraud costs to $3.98 per dollar lost. This suggests that more proactive and integrative approaches could yield significant benefits in managing fraud risks. Moreover, those who reassess identities on applications not originating from SNAP reported even lower fraud costs, illustrating the importance of quality data and streamlined processes in reducing errors.

The Human Cost

The ramifications of these fraudulent activities reach far beyond the financial implications—they have serious human consequences too. Delays and errors arising from overwhelmed agency operations can lead to hunger and malnutrition for vulnerable households, which amplifies financial stress and negatively impacts staff morale. With nearly half of SNAP agencies reporting diminished productivity due to staffing shortages and outdated systems, the integrity of eligibility decisions faces serious challenges.

Urgent Need for Modernization

Haywood Talcove, CEO of LexisNexis Risk Solutions Government, articulated the pressing need for modernization, robust data-sharing frameworks, and strong identity verification measures to combat the growing threat posed by fraudsters. Talcove observed the alarming nature of crime exploitation within digital arenas and underscored the urgency to enhance capabilities to protect resources essential for households in need.

Study Insights

Conducted in June–July of 2025, the True Cost of Fraud™ Study surveyed 150 senior decision-makers across various state and county agencies nationwide. This survey aimed to evaluate the scale, cost, and operational resources dedicated to preventing SNAP fraud, further delving into how modernization efforts and data quality can enhance application timeliness and payment accuracy.

The trends uncovered by the study demand an immediate and vigorous response from agencies tasked with administering SNAP. By investing in advanced fraud detection and improving access for legitimate applicants, agencies can take significant strides towards mitigating the impact of fraud on vulnerable populations.

For more insights and findings from this crucial study, a detailed report is available through LexisNexis Risk Solutions.