Oversight committee hears OIG and vendor on converting Bridge Cards to chip technology to curb EBT fraud

The Oversight Committee on State and Local Public Assistance Programs heard presentations from the Michigan Department of Health and Human Services Office of Inspector General (OIG) and vendor Conduent on converting Bridge Cards to chip-enabled cards and other steps to reduce Electronic Benefit Transfer (EBT) fraud.

Committee Chair Wolford opened the session by saying the panel was "committed to stop the fraud in Michigan," and then invited OIG staff to present. Andrew Kostowski, director of the OIG's Special Investigations Division, and Jennifer Allen, manager of the OIG's Benefit Trafficking Investigation Section, outlined recent investigative results and recommended technology and operational changes to limit fraudulent use of Bridge Cards.

The OIG told the committee Michigan averages "nearly 1,400,000 FAP recipients and $250,000,000 in FAP benefits paid out monthly." Investigators said criminals have used skimmers and shimmers on point-of-sale terminals to copy magnetic-stripe EBT data and produce counterfeit cards. The OIG reported it had detected and led to confiscation of 44 skimmers at Michigan retailers, safeguarded more than 76,000 Bridge Card accounts and over $16,600,000 in food stamp funds, and recorded a $305,000,000…