Manhattan District Attorney Alvin Bragg announced that investigators have uncovered a sophisticated “fraud factory” that stole over $7 million in Supplemental Nutrition Assistance Program (SNAP) benefits from vulnerable New Yorkers. The scheme relied on stolen Electronic Benefit Transfer (EBT) card information, allowing the defendants to withdraw cash and purchase high‑end items, including luxury vehicles.
How the scheme operated
According to court filings, the eight defendants conspired to obtain credit‑card and EBT processing accounts by using the names of real or fictitious delis. Once they had the accounts, they waited for SNAP benefits to be deposited onto the stolen cards. At that point, they allegedly skimmed the card data and transferred the funds directly into their own accounts.
“They were people who were going to withdraw funds using an EBT card and the money was gone,” a law‑enforcement official told reporters. Bragg explained that the conspirators would “just wait for the day when the cards got loaded with new funds and then just swipe the cards right into their own accounts.”
Impact on New Yorkers
The prosecution alleges that the operation targeted thousands of low‑income residents who rely on SNAP benefits for food. By converting the assistance into cash, the criminals not only deprived families of essential nutrition but also funneled some of the proceeds abroad, with a portion reportedly sent to Yemen.
Experts advise EBT cardholders to remain vigilant: check that card readers are not loose or tampered with, change PIN numbers monthly, and remember that state agencies will never call or text requesting a PIN.
Legal proceedings
Three of the eight accused were arraigned on Thursday on charges of grand larceny and related offenses. The alleged leader of the operation pleaded not guilty, and his defense attorney, Michael Farkas, cautioned that the district attorney’s claims remain to be proven in court.
The case follows a recent June crackdown by the U.S. Secret Service, which highlighted how criminals install skimming devices at bodegas and other retail locations to harvest EBT data. That operation underscored the growing threat of electronic fraud against welfare programs.
Ongoing investigation
Bragg’s office emphasized that the investigation is still active, and additional defendants may be identified as authorities continue to examine the network of accounts and financial flows. The Manhattan District Attorney’s Office is urging anyone who suspects EBT fraud to report it promptly.
As New York works to protect its most vulnerable citizens, this case serves as a reminder of the importance of robust security measures and community awareness in safeguarding public assistance programs.
Original reporting: Brookhaven News – ABC7 New York — read the source article.
