The state will soon be able to block more out-of-state and online purchases made with federal food assistance funds.
Starting January 22, the electronic benefit cards used by people receiving Supplemental Nutrition Assistance Program, also known as food stamps, will be set to automatically block purchases not made in Alabama or in person.
“We are extremely pleased to announce this new feature because it should curtail more of the electronic fraud that is stealing funds from eligible clients,” Commissioner Nancy Buckner said in a written statement Monday. “Over the past year we have implemented a number of new security features, with the assistance of our EBT card vendor, working to ensure SNAP benefits stay in the hands of Alabama families that need them.”
About 775,000 Alabamians receive SNAP benefits.
In November 2024 alone, the department paid out almost $5 million to theft victims across nearly 14,000 claims.
About a year ago, ADHR entered into a $6 million contract for a fraud mitigation initiative to install chips on all EBT cards, aiming to improve transaction tracking and provide users with the ability to remotely deactivate their cards.
Department officials have previously stated that the most commonly seen fraud methods in Alabama include skimming and cloning of EBT cards, where devices are illegally installed on point-of-sale terminals to steal EBT card information. Online data breaches were also a common method of EBT theft, where SNAP recipients’ personal information, including Social Security numbers, are leaked online.
The change to prevent out-of-state and online purchases starts Jan. 22. Cardholders can unblock their cards via an app, online or a customer service number.