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SNAP fraud costs agencies $4.29 for every $1 stolen, study finds
The fifth annual study found 77% of fraud costs come from detection, investigation and recovery, not the stolen benefits, researchers said.
A new 'True Cost of Fraud' study found that for every $1 lost to SNAP fraud, agencies spend an average of $4.29 on investigations, labor, and recovery efforts.
LexisNexis Risk Solutions surveyed 150 SNAP agency leaders to analyze fraud prevention expenses, revealing that 77% of costs stem from detection and investigative labor rather than stolen benefits.
State Rep. Kristin Robbins warned that Minnesota's phone signature waiver, extended through June 30, 2028, weakens identity verification and creates fraud vulnerabilities in the SNAP program.
Organized criminal groups exploit these programs because they lack sufficient safeguards, with SNAP currently employing fewer than 20 investigators for retailers, according to Talcove, CEO of LexisNexis Risk Solutions' government group.
Talcove argued the current incentive structure is broken because states do not bear the full cost of losses, though recent federal attention is creating a more difficult environment for perpetrators.