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Tuesday, May 13, 2025

EBT Fraud Investigation Targets 100 LA Stores; Multiple Arrests Made

A large-scale joint crackdown has been launched in Los Angeles to combat fraud involving the EBT debit card, which is used to distribute CalFresh (formerly food stamps) benefits for low-income residents.

family walking past store with EBT fraud investigation sign in Los Angeles
A family passes a Los Angeles store advertising a 1% EBT fee, as federal EBT fraud investigations intensify. [Sangjin Kim, The Korea Daily]

The U.S. Department of Agriculture (USDA), which led the operation, announced that the sweep was conducted in cooperation with the Department of Homeland Security (DHS) and the Secret Service (SS), marking the largest effort of its kind to date. The USDA said additional crackdowns are planned, with enhanced monitoring of CalFresh recipients’ accounts.

100 LA Stores Targeted in EBT Fraud Crackdown

On May 2, federal agents targeted around 100 EBT-affiliated stores across LA, arresting multiple suspects and seizing key evidence, the USDA confirmed. Authorities are focusing their investigation on suspected collusion between fraudsters and certain grocery and convenience stores that accept EBT payments.

The USDA further reported that some of the fraudsters are linked to international crime organizations that siphon benefits intended for low-income recipients.

Zero-Tolerance Policy on EBT Fraud

Brooke Rollins, Secretary of the USDA, emphasized that the Trump administration is enforcing a strict zero-tolerance policy regarding EBT fraud. Rollins stated, “We will protect taxpayers’ money from criminals and ensure benefits reach those truly in need.”

Authorities have flagged the growing sophistication of EBT card cloning and skimming scams as a serious issue. In response to rising fraud cases, the USDA’s special investigative unit has deployed agents nationwide to clamp down on EBT-related crimes.

Rising EBT Fraud Losses Spark Nationwide Action

The Los Angeles County District Attorney’s Office also established a dedicated task force in 2023 to investigate card-skimming and identity theft targeting EBT recipients. However, cases continue to surge.

According to state data, EBT fraud losses surpassed $39 million in 2023, a sharp rise from $22.5 million in 2022.

Fraudsters typically steal funds by installing illegal skimmers or hacking devices on EBT payment terminals to harvest personal information.

An investigator with the Homeland Security Investigations (HSI) unit noted that some store owners are directly colluding with scammers, worsening the impact on low-income families. “These crimes are becoming more sophisticated and continue to make life harder for vulnerable communities,” the investigator said.

LA County DPSS Urges Preventive Steps

The Los Angeles County Department of Public Social Services (DPSS) is urging CalFresh recipients to take steps to prevent EBT fraud, including:

  • Guarding Social Security numbers and personal information
  • Minimizing exposure of EBT card numbers and PINs
  • Avoiding photographing EBT cards
  • Not using EBT cards to pay cellphone bills

CalFresh EBT cards are issued to individuals earning less than $2,510 per month or families of four earning under $5,200 per month. The card can be used at grocery stores and select convenience stores, with monthly benefit limits of up to $292 per person and $975 for a family of four.


BY HYOUNGJAE KIM [kim.ian@koreadaily.com]

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Hyoungjae Kim
Hyoungjae Kim
Hyoungjae Kim is a staff writer at The Korea Daily. He covers news in Korea, the Korean community, and the Los Angeles area. He graduated from a university in Korea. He studied Korean language and literature and journalism and broadcasting. He first started his career as a reporter at The Korea Times. He has been working at The Korea Daily since 2016. He hopes that many people will share the stories and news of the Korean American community and people in Southern California.