SNAP recipients have lost an estimated $233 million to food-benefit theft over the past two years, much of it linked to card skimming, according to a federal inspector general projection. Yet most states have not adopted chip-enabled EBT cards, leaving recipients vulnerable to criminals who can copy card data and rapidly spend stolen benefits. The problem hit home for Jayeleauna Lewis, a 20-year-old Indiana mother who receives $486 in monthly food assistance. In September, minutes after the money was deposited, her balance was drained. Lewis says the transactions took place between 12:11 a.m. and 12:13 a.m. at eight stores in New York, New Jersey and Pennsylvania, while her card remained in her wallet in Indiana. Lewis suspects her card information may have been copied when she used it at a gas station. Skimming devices, secretly attached to payment terminals, can capture card details that criminals use to make duplicates. Investigators say thieves often buy goods that can be resold, including baby formula, and may empty an account within hours. “ They know they’re stealing from the poor,” said Michael Peck, a Secret Service assistant special agent in charge who oversees skimming investigations. He said organized criminal groups have targeted the benefits system. SNAP cards have lagged behind ordinary bank cards in adopting chip technology. Chips make it harder to copy card information than the magnetic stripes still used on many EBT cards. In early 2025, California became the first state to begin issuing chip-enabled EBT cards. The state later reported an 83% decline in theft of food and cash benefits. Fewer than one-third of states have upgraded or plan to upgrade their cards, according to the U.S. Department of Agriculture. The technology is more expensive: chip cards cost about 10 times as much to produce as magnetic-stripe cards, and an initial statewide conversion can run into millions of dollars. The USDA has offered limited modernization grants; seven states received a combined $5 million last year to address fraud. State budgets may be squeezed further by federal changes that took effect this month. The One Big Beautiful Bill Act cut federal contributions to states’ SNAP administrative costs by half, while requiring state agencies to reduce payment error rates or face financial penalties. At least five states have indicated they may delay chip-card plans or related investments because of the funding changes, according to a survey by the American Public Human Services Association and the Urban Institute. Kathryn Larin, a director at the Government Accountability Office, said the reduced support could make it harder for states to dedicate money to theft prevention. The USDA, however, said states had failed to act against skimming for years and argued the funding changes should not prevent them from addressing the problem. Until cards are upgraded, many states advise recipients to take precautions such as changing PINs frequently or locking cards between purchases. Larin noted those steps can be difficult for people without smartphones or access to card-management apps. Law enforcement efforts to find skimming devices also face a limit: criminals can return to a store and install a new one, Peck said. When SNAP money is stolen, recipients generally cannot get it back. Congress excluded SNAP from the federal protections that require reimbursement for unauthorized debit and credit card transactions in 1996. A temporary federal replacement program reimbursed more than $320 million to nearly 670,000 households for stolen benefits from October 2022 through December 2024, but there is no current federal recourse. The loss can force families to skip meals, borrow money or fall behind on bills. Lewis says her mother has been stretching her own paycheck to help feed Lewis and her 3-year-old daughter. In Illinois, Christopher Branch said he took on side jobs to buy groceries after his food benefits were stolen and not replaced. Congress is considering measures to modernize EBT cards and restore stolen benefits, but the proposals face an uncertain path. A chip provision is included in the Senate version of the Farm Bill, but not the House version. The broader debate over SNAP funding and state penalties remains a hurdle.