Greg's Corner

Scammers steal millions from California’s disadvantaged

By Greg Collier

Usually, we post about scams that the typical consumer should be aware of. They should also be aware of this one, but for different reasons.

As we always say, scammers don’t care who they’re taking advantage of. Their victims could be the elderly, or they could be inexperienced teens. There’s probably even a scam that takes advantage of orphans somehow. They love taking advantage of those who are financially secure. However, that doesn’t stop them from stealing from those who have very little to their own name.

According to a report from the L.A. Times, scammers are stealing millions of dollars from those who receive economic assistance from the state. Typically, the scammers are targeting those who receive welfare and food stamps. The stamps themselves have been long gone for years. They’ve been replaced with an Electronic Benefit Transfer card, more commonly known as an EBT card. Benefits are deposited into the recipient’s account, and the recipient uses the card as they would a normal debit card. Therein lies the problem.

Security experts believe that the scammers are obtaining card information by installing skimmers at various locations where EBT cards are used. Traditionally at convenience stores, ATMs, and gas stations. When a cardholder puts their card into a machine where a skimmer has been placed, scammers can copy the information from the card, including the PIN. Scammers will then go to an ATM and withdraw the cardholders benefit money.

The Golden State isn’t helping their benefit recipients much. Once a recipient’s card has been skimmed, the only protection they’re given is that they’re told to withdraw all their money at midnight on the day of the month the benefits are issued.

California’s EBT cards are still using the magnetic strip, which is where the scammers take the information from. Most commercial and consumer credit and debit cards use the more secure chip. The state says it would take at least 2 1/2 years to update the cards.

Meanwhile, it takes recipients at least a month to have their benefits replaced by the state. That’s a month they have to worry about putting food on the table and keeping a roof over their family’s heads. And if they have their benefits stolen more than once, the recipient could be investigated for EBT card trafficking.

Many have the belief that people who receive assistance from the state are somehow living the high life. Nothing could be further from the truth. These are people who struggle every day, and the scammers just make that struggle worse. Sadly, they seem to be receiving no help with that fight.

We urge you to read the L.A. Times article that goes more in-depth about their plight.