Welfare fraud is more common than one might think, with the USDA reporting that the cost of benefits being trafficked (sold for cash or otherwise misused) reached $1.27 billion within a 2012 to 2014 study period (that the USDA states is directly comparable, if not lesser dollar value, to current estimates) ("SNAP EBT | Food and Nutrition Service, 2025").

But what exactly falls into the category of welfare fraud? In general, welfare fraud describes the intentional misuse of state welfare benefits. In California, fraud largely pertains to CalFresh (California’s implementation of the federal SNAP program), CalWorks, and Medi-Cal.

Photo courtesy of wix

Photo courtesy of wix

Welfare Fraud

The Exact Problems

So that the benefits "continue rolling" when they shouldn't, criminals choose their medium of treachery

The main types of SNAP fraud, according to the CDIA, are the following: identity-related, also known as recipient fraud, account takeover, eligibility fraud, and trafficking of benefits through EBT. “identiy-related fraud is a leading contributor” (Ellman, 2022). Recipient fraud is when an individual knowingly provides false information or conceals information with the hopes of obtaining public benefits/welfare like CalWORKS (money) CalFresh (food) or Medi-Cal (medical) (Vista Criminal Attorney). The issue of identity-related/recipient fraud is even greater for agencies that allow higher numbers of applications via mobile/web apps, with them facing higher fraud-related costs, due to the lack of face-to-face interaction or verification.

The Fruitlessness of Inquiry

Efforts to combat fraud only increase ineffective employment of federal funds

Within an article by the Consumer Data Industry Association, a trade association of roughly 200 consumer data companies that provide fraud prevention and risk management services, a study of twenty-three SNAP agencies (including California) found that SNAP fraud is financially “staggering” for government agencies (Ellman, 2022). In fact, for every dollar of SNAP benefits already lost to fraud, agencies face several times that cost due to investigation and administrative costs.

The Issues

What is actually a problem?

So is there a solution..?

These identity-related fraudulent activities within U.S. snap programs are great wastes of state and taxpayer funds. This is a national problem, yet California is unlike the rest of the nation. It's worse. Recipient-fraud fraud has yet to see any major remedies within California by the government; however, a new method, "a new hope" to prevent EBT card fraud has enacted under California governor Gavin Newsom.

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Will it work?

Did The Death-Star Plans Safely get Passed?

According to the California government website, “New innovative fraud-fighting technologies employed by the state have reduced reported theft of cash and food benefits by approximately 83% since January 2024. These efforts include launching chip-and-tap-enabled EBT cards, a national first” ("California reduces theft of food and cash benefits by 83%", 2026). The press release highlights that there have been and are efforts in California to reduce welfare fraud. This new EBT card technology, harnessing the power of new anti-fraud technology and data analytics, has made a real difference–as of January 2024, victims were reimbursed about $20.9 million in stolen EBT benefits–helping those who really need it.

21 was still stolen, and technology is changing ever day--is this enough to keep up?

It's a good start, but more is needed

Unfortunately, CDIA reports that few SNAP agencies have fully implemented a in-fact government created option: the USDA SNAP Fraud Framework, as well as modern data-driven tools that can detect fraud within digital channels. The best solution to combat identity-releated fraud is for the CA government to rely more heavily on data-driven verification procedures, as well as moving more welfare applications off of online platforms to reduce fraud rates, as the higher numbers of fraud on these services indicate they aren’t working as is.

California may not yet have moved to a stage where all forms of welfare fraud have been tackled within the state, but changes have been made under Gavin Newsom. However, another issue within the welfare abuse issue resides in nutrition–an issue Newsom has yet to have acted upon.