Leaders at The Oregon Department of Human Services (DHS) said it accidentally sent out thousands of Pandemic-Electronic Benefit Transfer (P-EBT) cards to kids who should not have been eligible for them. Minors were eligible for the cards if they were eligible for free or reduced lunch or if they were under six years old and received SNAP benefits.
U.S. Sen. Ron Wyden was already speaking out about this issue. He demanded tougher security for the benefit cards that low-income families use to buy groceries. Earlier this month, Wyden sent a letter to Agriculture Secretary Tom Vilsack urging the USDA to upgrade government issued Electronic Benefit Transfer (EBT) cards with smart chip technology, which make them more difficult for fraudsters to skim.
But, this issue was less about fraud and more about spending money on food for children. As part of a temporary program to help children impacted by the pandemic, DHS sent out P-EBT cards to families with children, with each eligible child receiving $391 in food benefits. Those funds were supposed to make up for meals the children would have gotten through school when schools were shut down because of COVID-19.
DHS stayed on it and figured out a way to recover the funds. It reported recovering $1.32 million of the $1.46 million in funds that were mistakenly sent out. The Department of Human Services said people who received the cards and spent the money won’t have to pay it back. Scams are running rampant for some. One Portland mother had $820 in benefits stolen over a two-month span. Another woman lost nearly $500 in Supplemental Nutrition Assistance Program or SNAP benefits.
About 3,700 people received cards in total — adding up to about $1.46 million that shouldn’t have been sent out. The recovered amount reported is about $1.32 million. In addition to getting the funds back The United States Department of Agriculture will be upgrading the cards with smart chip technology, which would make them more difficult for fraudsters to skim.
