A new wave of food stamp fraud is devastating the frum community in New York City, with scammers draining millions of dollars from Electronic Benefit Transfer (EBT) accounts. Dozens of families have reported their Supplemental Nutrition Assistance Program (SNAP) benefits stolen, leaving them without essential funds to purchase food.

The scam, which has hit multiple Brooklyn Jewish neighborhoods this week, follows a similar fraud operation in Lakewood just days earlier. In both cases, fraudsters installed skimming devices on point-of-sale card readers in kosher supermarkets, silently stealing card numbers and PINs. When victims later swiped their cards, scammers were able to remotely access and wipe out their accounts.

According to NYC’s Department of Social Services, over 61,000 New Yorkers have filed claims for EBT fraud, with more than $19 million in stolen funds recovered so far. However, experts warn that thousands more remain at risk.

The fraud is carried out in two main ways:

1. Card Skimming at Supermarkets – Scammers attach illegal skimming devices to checkout machines at stores, copying EBT card numbers and PINs. Victims unknowingly provide their information when making a purchase, allowing criminals to later drain their funds.
2. Phishing Scams by Text Message – Some SNAP recipients receive text messages falsely claiming their EBT card has been deactivated. The message instructs them to call a number or click a fraudulent link, where they are tricked into entering their card details. Once obtained, scammers use this information to access and steal funds.

The latest wave of fraud has primarily targeted Brooklyn’s frum community, with major kosher supermarkets—such as Moshe’s in Flatbush—among the affected locations. Store owners, now aware of the threat, have begun checking their card readers daily to ensure no skimmers are installed.

Local officials and store managers warn that the perpetrators in Brooklyn appear to be white and Hispanic males who are outsiders to the community. If suspicious activity is noticed near registers or payment terminals, shoppers are urged to alert store management immediately.

Just last week, over $100,000 in SNAP benefits were stolen from frum families in Lakewood, NJ, in an identical scam. Authorities believe that skimming devices were placed on checkout machines at a local kosher food store, affecting a large number of households.

Lakewood residents were left scrambling after discovering their accounts had been wiped clean. Many who rely on SNAP benefits to make ends meet were left without resources, sparking fears of a larger, more organized operation targeting Jewish communities.

The situation is further complicated by a new federal law that eliminates reimbursement for stolen SNAP benefits. On December 21, 2024, President Joe Biden signed the American Relief Act, 2025 (PL 118-158), which cancels the federal replacement of stolen SNAP funds due to fraud.

Under this law, SNAP recipients who fall victim to skimming or phishing scams after its enactment will not be eligible for federal reimbursement. While states may choose to replace stolen benefits using their own funds, there is no guarantee that New York or New Jersey will offer financial relief to affected families.

With these changes, victims of future fraud may have no way to recover their stolen food assistance, making proactive protection more critical than ever.

In response to the surge in fraud cases, authorities and community leaders are urging SNAP recipients to take immediate steps to safeguard their accounts:

• Check for Tampered Card Readers – Before using an EBT card, shoppers should inspect payment terminals for signs of skimming devices. If something looks suspicious, they should alert store management.
• Regularly Change PINs – Frequently updating PINs can help prevent unauthorized access to accounts.
• Lock EBT Cards When Not in Use – The NY Human Resources Administration (HRA) offers an app that allows users to lock their EBT cards, ensuring that only authorized transactions occur.
• Monitor Account Balances – Checking balances frequently can help users spot fraudulent activity before their accounts are drained.

Victims of fraud are urged to report stolen benefits immediately to their local SNAP office and file claims online with the Department of Social Services. However, with federal reimbursement no longer guaranteed, many families fear they will never recover their stolen funds.

With back-to-back incidents in Brooklyn and Lakewood, authorities worry that these cases may be part of a larger, more coordinated attack. The FBI estimates that skimming costs financial institutions and consumers over $1 billion annually, and the Jewish community appears to be a specific target in this latest fraud wave.

State lawmakers have passed bills that would require upgrades to EBT cards, including contactless payment technology and the ability to lock accounts when fraud is reported. Additionally, harsher penalties for those caught placing and retrieving skimming devices have been approved in the NYS legislature. However, enforcement and implementation of these measures remain ongoing.

(YWN World Headquarters – NYC)