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Lawmakers press OTDA on SNAP skimming and push for EMV chip EBT cards and higher minimum SNAP benefit
Summary
Senators and assembly members pressed OTDA about rapidly rising fraud and 'skimming' of SNAP benefits on EBT cards. OTDA outlined outreach, locks and a possible $40 million technical cost to implement EMV chip cards; advocates and legislators urged faster action and proposed state reimbursement funds for victims and a higher minimum monthly SNAP.
State legislators focused sustained attention on the growing problem of SNAP benefit theft, commonly described by witnesses and members as “skimming.” OTDA Commissioner Barbara Gwinn said the agency has implemented an EBT “lock” feature and a public outreach campaign; she also described estimates she has seen that implementing chip‑enabled EMV EBT cards could cost in the low tens of millions in the first year (the testimony included an estimate up to $40 million, drawn from other states). Gwinn said OTDA and its vendors are still refining estimates and procurement approaches, and that the administration is exploring options to reduce first‑year roll‑out costs.
Legislators and advocates said the state needs a two‑track response: (1) immediately increase outreach and take interim measures that reduce theft; and (2) move rapidly to implement chip EMV EBT cards to prevent future electronic skimming. Several lawmakers asked why other state agencies (for example, the Department of Labor debit card program) already use chip cards and whether OTDA had explored sharing procurement or vendor lessons learned. Commissioners said the systems and procurement requirements differ and that OTDA must follow its required procurement process, but that staff have reached out to other agencies to learn from their experiences.
Advocates and some lawmakers urged New York to consider state reimbursement for households that lose benefits to skimming while federal reimbursement avenues have been constrained. Hunger advocates also recommended raising the SNAP minimum benefit to $100 per month statewide; OTDA said this would be a legislative policy decision and would increase the state’s fiscal exposure.
Why it matters: SNAP benefits are a direct hunger‑relief tool used by nearly 3 million New Yorkers. Rapidly rising fraud reduces the program’s impact, leaves households unexpectedly without food and spreads distrust. Legislators signaled urgency to move beyond outreach and temporary fixes to durable technical solutions.
Next steps: Lawmakers signaled they will examine the cost estimates, consider whether the state should create reimbursement mechanisms for skimmed benefits, and look for a path to accelerate procurement of EMV chip cards while exploring interim consumer protections (card locks, alternate distribution options).
