News Summary

Criminals have exploited Michigan’s outdated SNAP Bridge Card system, resulting in significant financial losses. Over $14 million was stolen from food benefits in 2024 alone, revealing vulnerabilities that fraudsters capitalize on. State officials are proposing upgrades to the system, but concerns remain about access for low-income residents. Legislation aimed at implementing stricter fraud prevention measures is also under discussion, highlighting the critical need for reform to protect food assistance for those in need.

Detroit, Michigan – Criminals have stolen millions of dollars from Michigan’s Supplemental Nutrition Assistance Program (SNAP) due to ongoing fraud involving the state’s outdated Bridge Card system. Despite providing essential food benefits to over 1.4 million low-income residents each month, the vulnerabilities in the Bridge Card system have allowed fraudsters to siphon off significant funds meant for those in need.

In testimony presented to the Michigan House Oversight Committee, it was revealed that the state has experienced considerable losses due to fraud over the past decade. Reports indicate that at least $14 million was stolen from SNAP benefits in 2024 alone, following a staggering loss of over $31 million in 2015. Currently, Michigan distributes around $250 million in food benefits every month, relying on magnetic stripe cards rather than more secure technology.

Doug Woodard, representing the Office of the Inspector General, reported alarming insights into the methods employed by fraudsters. It has been noted that criminals are able to purchase kits online, including on platforms like Amazon, to create electronic benefit transfer (EBT) skimmers. These devices are used to clone Bridge Cards and illegally access the benefits of unsuspecting recipients.

Moreover, state officials from the Michigan Department of Health and Human Services (MDHHS) reported that they have sent over 269,000 replacement Bridge Cards in a single year due to fraudulent activities. This pattern of fraud has led to the seizure of 44 skimming devices from retailers and the prevention of over $16 million in food stamp fund thefts. However, as the federal government has stopped reimbursing stolen benefits, the financial consequences are increasingly falling on Michigan taxpayers.

In response to the ongoing challenges, Representative Jason Woolford has proposed upgrading the Bridge Card system to include chipped cards, similar to those used in five other states, including Alabama and California. While this upgrade could require millions in initial costs, supporters argue that it could save taxpayers money in the long run by reducing fraud. There are concerns, however, about the convenience for recipients, who may face difficulties in accessing food assistance if changes are implemented without careful consideration of their needs.

Attempts to hold fraudulent individuals accountable have been complicated by the state’s decision to withhold a list of those accused of SNAP fraud from the public. Reports of fraud vary widely across different regions of Michigan, and local police departments, such as the Ann Arbor Police Department, have resisted requests for information, further complicating efforts to combat this issue.

Legislation to address these concerns, specifically House Bill 4515, aims to introduce photo and signature requirements for all Bridge Cards. The anticipated costs for implementing these requirements range from $1.5 million to $4.5 million annually. Advocates for the bill argue that this could mitigate fraud, though the House Fiscal Agency has expressed uncertainty regarding the potential savings from reduced fraud, deeming them indeterminate and likely negligible.

The ongoing legislative discussions emphasize the need for a balanced approach in addressing fraud protection while ensuring that vulnerable populations have convenient access to food assistance. As Michigan grapples with these issues, the urgency for an updated and secure system remains critical in safeguarding the integrity of food benefits for those who rely on them.