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'The taxpayers are victims': State-issued EBT funds stolen, recipients say

Radney, a single parent of two, was expecting around $1,000 for the month, but only left with $100 after he says thieves took the rest.

SACRAMENTO COUNTY, Calif. — Money on state-issued debit cards used for CalFresh and CalWORKs has been disappearing for many Californians.

Some Sacramento County employees tell ABC10 it has intensified over the past two months.

“I went to go get the money off my card, it is gone,” said a CalFresh/CalWORKs recipient.

Frustration boiled over at the Sacramento County Human Assistance Office in north Sacramento as many people packed the office, finding out they were left with pennies or a few dollars after their monthly CalFresh and/or CalWORKs stipends were not there.

“They get so greedy; they don’t even wait for the food stamps. They grab the cash, and they grab the food stamps,” said a CalFresh/CalWORKs recipient.

ABC10 cameras were not allowed inside the facility, but people inside said there were about 100 people at any given time demanding answers.

“People could not even sit down and was packed,” said Jahmi Radney, CalFresh and CalWORKs recipient.

Radney, a single parent of two, was expecting around $1,000 for the month, but only left with $100 after he says thieves took the rest.

EBT is supposed to help eliminate uncertainty for low-income families, but he believes thieves stole the funds before he could withdraw them.

“My landlord does not want to hear, 'I don't have the money,'” said Radney. “That is going to put a lot of people on the street. Then they tell me we have to wait 10 business days.”

Jon Coupal with the Howard Jarvis Taxpayers Association says one of the solutions to fixing this problem is placing a chip in the EBT cards to improve verification. The state in the past has told ABC10, they are working towards that solution.

“I think the solutions are there, but the solutions are not being implemented,” said Coupal. 

He says it's not happening fast enough as the money that is replaced into the programs, again falling on the taxpayer.

“These are not victimless crimes,” said Coupal. “The taxpayers are victims, the people who are entitled to SNAP benefits, they are being ripped off. In the meantime, all we are doing is providing massive amounts of cash, hundreds of millions, if not billions of dollars, to cartels.”

All Radney and others can do is show a letter to their landlord, which they received from the Sacramento County Human Assistance Office, showing they were the victim of electronic theft. Hoping the landlord can be flexible as a lifesaving program for millions of California families is hurting those it was supposed to protect.

“I just pray for all the families out there because this is very hard right now,” said Radney.

Sacramento County says anything happening with EBT cards is not new, and it is not exclusive to the county. The state has been working on various protections for a while, according to the county.

They also said they did transition to a new system and wait times may be longer than usual.

ABC10 reached out to the California Department of Social Services. On Friday afternoon, spokesperson Theresa Mier replied, telling ABC10 the department will soon be launching ebtEDGE, a mobile app and online web portal that "will allow EBT cardholders to freeze their card when it’s not in use, block all online and/or out-of-state transactions, change PINs, and request a replacement card directly through the app."

The app is expected to launch before the end of the year. More information is available HERE.

Mier also said the department is expecting to start putting chip/tap technology into EBT cards starting in the summer of 2024.

"In partnership with our EBT vendor, federal partners, and other stakeholders, the Department is actively working to develop and deploy the use of chip/tap technology on EBT cards," Mier said. "The 2023 Budget Act includes $50 million to support this effort. It’s important to note that other states do not use chip/tap EBT cards, as there are complex technological changes required to accomplish this effort, both in California and nationwide."

She adds that any cardholder who believes they're a victim of theft should immediately contact their local county office. Cardholders can also contact the EBT Customer Service Line at (877) 328-9677 to cancel their EBT card and request a new one.

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