The EBT cards the state uses to deliver financial assistance to low-income residents lack security features common to credit and debit cards. California officials plan to upgrade. Meanwhile, they’re paying millions to replace stolen money and food stamps.
A vulnerability
Low-income Californians reported $29.7 million in cash welfare and $4.7 million in food aid stolen in 14 months.The state social services department is proposing to spend $76.5 million over the next three years to upgrade EBT cards with “enhanced security features,” according to Gov. Gavin Newsom’s budget proposal. Department spokesman Jason Montiel did not answer a question about whether that means chip cards specifically.
“I feel that the EBT system was like the last place where things are so unsafe and so poor in terms of consumer protection,” Silver said.cards were issued by a different department, the Franchise Tax Board. Spokesperson Andrew LePage said the agency chose its debit card vendor, Money Network, partly because it could provide some chipped cards.
Meanwhile, California is blocking suspicious EBT transactions, including ones made out-of-state, state officials told advocates in December.
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