Food Stamp Fraud Strikes.

[ms]

Food Stamp Fraud Strikes
Detroit-area Stores Swipe Millions From Food Aid
POSTED: Monday, March 1, 2010
UPDATED: 9:56 am EST March 1, 2010
DETROIT -- The electronic card providing food-stamp benefits for the poor has been a tool for fraud in many small Detroit-area stores. Used to buy items such as drugs, booze and Viagra. It's literally swiped millions from the U.S. Treasury.
Since 2007, there have been at least 122 fraud-related convictions of owners or employees in the Midwest region of Michigan, Illinois, Indiana, Ohio and Wisconsin. The government says about half occurred in southeastern Michigan.
Customers step to the counter and their debit-style card is swiped to electronically record a purchase.
In one of the boldest scams, stores give cash to a food-stamp recipient and then deduct a larger amount off the card. The public gets fleeced because the store is reimbursed by the government.

[wreckhog]

122 cases in 3 years does not strike me as a serious fraud problem. How many bad checks were written in that time, how many identity thefts?

[The Hermit]

Multiply Detroit by thousands of places and see how the picture hurts us honest folks all over the country. I know of people who have those cards and they offer to buy your groceries on their card in exchange of half the value in cash. Cash to support their habit. "Ain't" socialism great?



   The Hermit