Posted on 10/15/2012 12:59:12 PM PDT by Snuph
Understaffed food stamp fraud prevention units and lax anti-fraud security on Electronic Benefit Transfer (EBT) cards have created a thriving underground market where food stamp recipients illegally sell and trade their taxpayer-funded benefits, often using online websites like Backpage.com, Craigslist, or social media. That is one of the findings of a new report by the Government Accountability Institute (GAI) examining how the poverty industry has become a massive profit center for politically-connected corporations like JP Morgan, who have made at least $560,492,596 since 2004 to process the EBT cards of food stamp recipients in 24 states and two U.S. territories.
(Excerpt) Read more at breitbart.com ...
“Understaffed food stamp fraud prevention units and lax anti-fraud security on Electronic Benefit Transfer (EBT) cards have created a thriving underground market where food stamp recipients illegally sell and trade their taxpayer-funded benefits.......”
Agree with the “well duh”. I’d bet understaffing is deliberate. History tells us fraud is rampant in such programs, and Obama, and Company know it. It’s all part of overloading, and breaking down the system, which they are doing all over the spectrum of government. It’s just part of their trashing America to achieve their Socialist/Communist end.
“In 2008, JP Morgan donated $808,799 to Barack Obama.”
If they’re selling their food stamps at a discount how are they paying for food?
I’ve been offered foodstuffs bought with an EBT card on a 2:1 or even 3:1 basis for such things as toiletries, booze, tobacco and gasoline.
Don’t know much at all about EBT/food stamps. Maybe somebody can explain this to me. Earlier this year I was standing in line at super market. Thought it odd that woman in front of me was standing in line with just a candy bar. She used EBT card. Cashier asked her if she wanted cash back. She asked for and received $100. Am sure that it was EBT and not bank card.
Saw an article about this going on in Philly a few months ago. Underground dealers will accept the EBT cards as payment for illicit goods. Then I think they were saying the best value they could get for the EBT cards was laundry detergent, and then I think they resell that or barter it at a lower value.
Here’s an article about why Tide detergent is being stolen...
Police believe thieves are using the soap on the black market, which retails for $10-$20, to buy drugs. On the black market, Tide is often referred to as “liquid gold” and can go for $5-$10 per bottle.
So why is Tide the only detergent being targeted? Authorities list several reasons: Tide is instantly recognizable because of its Day-Glo orange bottle; it is one of the most expensive brands of laundry detergent; and it does not have serial numbers, so it cannot be tracked.
They have other resources. The fact they are selling these benefits has to mean they actually don’t need them, therefore they should have been turned down in the first place.
Actually the program shouldn’t exist period. We always had means in the private sector to take care of those in need should they identify themselves, and request help before such a thing as Food Stamps.
Programs such as these can be traced back to Leftist politicians, Leftist leaning “Moderate” politicians who see opportunity to increase their power, establish more foothold in our government by packing government with Liberal allies that will cater to them.
We have millions of Liberals managing, and, or working in bureaucracies in support of programs that are not to be found in our Constitution. We don’t need those programs. We didn’t need them before, and don’t need them now. To abolish them though would be counter to the lust for power of the professional political class currently Lording over Washington D.C..
Some EBT cards also serve as the mechanism by which the welfare recipient receives their monthly cash allotment. Instead of giving it in the form of a check, they load it onto the recipient’s card. They can get cash from a bank if they have an account, but otherwise the only way they can access cash is if they go to a store, buy some small thing, and ask for cash back.
I know this only because I have a friend (really!) who used to be on public assistance.
They're using their unreported income from under-the-table pay arrangements or from illegal activities.
Previously, new EBT Cards were issued almost automatically at the local DSHS offices to anyone with rudimentary ID (like, possession of a government envelope delivered by the P.O. to your alleged home address).
The biggest theft issue here is that people give-sell their EBT Cards to friends or others.
Those people then spend the EBT funds in stores that have no cameras, or, ridiculously blurry cameras.
Once all the money is spent, the rightful owner goes to DSHS, claims theft or lost card, and DSHS issues a new, cash loaded EBT Card.
Apparently, no one even starts an investigation until a client has “lost” his EBT Card three or four times.
EBT Cards are also used for General Assistance welfare cash and TANF cash (for impoverished families).
This is for people who don’t have - or can’t get - a bank account.
[ Police believe thieves are using the soap on the black market, which retails for $10-$20, to buy drugs. On the black market, Tide is often referred to as “liquid gold” and can go for $5-$10 per bottle.
So why is Tide the only detergent being targeted? Authorities list several reasons: Tide is instantly recognizable because of its Day-Glo orange bottle; it is one of the most expensive brands of laundry detergent; and it does not have serial numbers, so it cannot be tracked. ]
Hmmm, maybe we preppers should stock up on Tide as a form of “crrency” after the collapse since the price of gold is so high...
I wonder what would happen if I went to Wal-Mart and bought a cart load of Tide...
Probably spend the night inthe click or be put on a list...
If they’re selling their food stamps at a discount how are they paying for food?
The left put too much cash on their EBT so they are never actually at any RISK opf starving or they lie and say they have more kids or their kids eat only school lunches, which now include breakfast.....
Instead of EBT cards they shoudl only hand out bags of “bachelor chow” high in protein that makes it’s own gravy in water and give them a 20 lb bag every week only.
That would cut the fraud ior have pre-approved “food boxes” that the card only buys and nothign else.. which are pre-loaded with the basics of foodstuffs.
The fraud needs to be eliminated..
EBT and SNAP need to be dismantled at a good moderate pace, but they need to be fully dismantled withint he next 10 years or we will be living in sanctuary zones filled with Gimmies, Ghosts, and Dims....
Can you imagine the Death Star that’s going to be arrayed against us if we get serious about cutting food stamps?
It will have to be dismantled through attrition and a slow constant pressure much like the way it weas created, otherwise the gimmies will riot..
Only the processed snack foods, convenience and ‘comfort’ foods are items bought with food stamps that wouldn’t be bought anyway.
People got to eat- it’s the choices they make that are affected by their EBT bounty.
The media that snack food industries advertise in with those EBT profits is the point of the spear in the war against EBT reform.
Imagine MSNBC’s profits without Coke, Oreo, etc. advertising for their share of EBT money.
Send them my way, I will give them 50 cents on the dollar, Cash. Got to fill my freezer. Crass isn’t this?
Imagine a cyberattack on EBT, like Leon Panetta recently mentioned, and see what happens.
There are your instant riots. Just add millions onto the welfare rolls and cut the money.
Riots, burning entire city blocks, hospitals overwhelmed with injuries and dead people, people not able to go to work, transportation shut down, martial law declared, the military deployed in out borders, food production cut as workers can’t get to work.
Similar events have already happened in Atlanta with EBT cards not having money loaded on them and not enough Section 8 housing available for the 30,000 low income people who showed up for probably 10 available homes.
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