Back in the 70’s, I knew shop owners who would give 50 cents on the dollar for food stamps (back when they were paper scrip). They could use the cash to buy cigarettes, booze, drugs, women, whatever, and the owner would launder the food stamps through his regular inventory cash flow.
At the same time, I knew welfare recipients who would carry an inch-thick wad of food stamps in their wallet, because they were triple- and quadruple-collecting (different addresses, different baby-mamas and -papas, etc.).
The scam has been going on for DECADES, and more and more people have caught onto it.
We need to do away with food stamps and just mail care packages of basic survival food to the needy.