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SNAP | Why Mobile Apps Are Failing to Stop Food Stamp Fraud?

SNAP | Why Mobile Apps Are Failing to Stop Food Stamp Fraud?

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 Episode Summary In this episode of Upwardly Mobile, we investigate a growing financial crisis affecting the nation’s most vulnerable families. The USDA now estimates that up to $12 billion is stolen annually from the Supplemental Nutrition Assistance Program (SNAP). We explore how transnational criminal rings are using sophisticated technology—from physical skimmers to brute-force cyberattacks—to drain EBT cards in seconds.We also break down why the government’s latest solution—mobile apps that allow users to "lock" their cards—is failing to stop the theft. We analyze the technical vulnerabilities of the legacy magstripe system and explain why app-based controls are often bypassed by backend fraud and race conditions.This episode is sponsored by Approov. Mobile apps are now the front door to critical services, but as we discuss in this episode, they are only as strong as the security frameworks behind them. Approov provides comprehensive mobile app protection, ensuring that the requests hitting your API are from genuine apps running on untampered devices.Key Topics & Takeaways:• The Scale of the Problem: Federal investigators estimate that SNAP fraud has hit all-time highs, potentially reaching $12 billion annually. Georgia alone reported nearly $23 million stolen in just the first quarter of 2025.• How the Fraud Works: Criminals are utilizing advanced skimming technology and "brute force" software that can guess a four-digit PIN in less than a second. The Secret Service notes that these are often transnational organized crime groups capable of working easily across borders.• The "Lock" Feature Failure: Many states, including Georgia, encouraged users to download apps like ConnectEBT to "lock" their cards. However, users like Sheria Robertson report having funds stolen mere minutes after unlocking the app to make a purchase.• The Technical Vulnerability: The core issue is that EBT cards still rely on legacy magnetic stripe technology rather than secure chips (EMV). Because the backend system relies on static track data and a PIN, the mobile app’s "lock" feature is often bypassed by race conditions or bot attacks on IVR systems.• Bot Attacks: Cybercriminals are using bots to hammer IVR systems to check balances and time their withdrawals the moment funds are deposited.Featured Stories & Data:• Victim Spotlight: Sheria Robertson, a single mother who lost her Thanksgiving food budget to thieves in Brooklyn, NY, despite being in Georgia and using the app's security features.• Investigator Insight: Mark Haskins from the USDA Food and Nutrition Service explains that criminals are "taking it to the next level" with cyber and brute force attacks.• State Data: Top states for reported fraud include Georgia, New York, and California.Relevant Links & Resources:• USDA SNAP Replacement of Stolen Benefits Dashboard• Report Fraud: USDA Office of Inspector General Hotline [(800) 424-9121]• Technical Deep Dive: Security Vulnerabilities and Fraud Mechanics in EBT Systems• News Coverage: WSB-TV: Georgia officials say state SNAP system subject to cyberattack• Propel App Resource: How are EBT benefits being stolen?Keywords:SNAP fraud, EBT skimming, food stamp theft, mobile app security, Approov, ConnectEBT, cybercrime, magnetic stripe vulnerability, USDA, social safety net, financial fraud, IVR bot attacks.🎙️ Upwardly Mobile is hosted by Skye Macintyre & George McGregor. 🛡️ Sponsored by Approov: The only comprehensive solution for mobile app and API security. 👉 Subscribe & Review: Upwardly Mobile | PodcastThis episode includes AI-generated content.
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