Reporting Highlights
- Lamborghinis and Food Stamps? Trump officials claim many SNAP recipients are scammers, even as statistics show they’re far more likely to be victims.
- Romanian Organized Crime: Transnational gangs, who once got rich siphoning funds from credit and debit cards, have now turned to pillaging SNAP benefits.
- The Chip Solution: Most SNAP theft could be blocked by adding microchips to outdated magnetic-stripe cards, but Congress won’t fund the move.
These highlights were written by the reporters and editors who worked on this story.
It wasn’t the kind of call a grocery store gets every day. A customer with a thick Eastern European accent was on the phone saying he wanted to buy several thousand cans of Red Bull. Could the store have them in stock in a few days? Also, did they have equipment to move all those stacks of energy drinks into the parking lot, where two minivans would be waiting?
When the day came, Oct. 19, 2022, employees at the Smart & Final store in San Diego sold 3,960 cans of Red Bull and 720 of Monster Energy to two men and two women, all with the same accent, and helped them wheel the pallets out back. To pay for it all — the bill came to $10,747.05 — the group pulled out piles of plastic. These weren’t credit or debit cards; they looked more like hotel-room keys. There were 25 cards in all, each with a different amount loaded onto it, and the four people took turns swiping one after another. Then, the payment complete, they drove off.
In the days that followed, people as far away as New York and Florida made panicked calls to the store. They wanted to know why their food-stamp accounts (containing their Supplemental Nutrition Assistance Program, or SNAP, benefits) had been drained at this seemingly random location in San Diego.
It would turn out that what became known as the Red Bull Crew had gotten ahold of their SNAP data and used the funds to buy the energy drinks, which they then sold online or to smaller stores. It was hardly an isolated event. From September through November of that year, the same crew, part of a criminal syndicate based in Romania, bought at least $305,274.52 in energy drinks, using SNAP account information and PINs stolen from at least 174 victims nationwide, according to court documents and federal investigators.
To hear the Trump administration tell it, the SNAP program is under siege by well-heeled recipients of food stamps. Vice President JD Vance, upon being named “Fraud Czar” this spring, said: “There are people who have Lamborghinis who currently receive SNAP benefits.” Agriculture Secretary Brooke Rollins, whose agency oversees the program, regularly goes on TV and social media to allege that masses of SNAP recipients are scamming the system, driving Bentleys, Ferraris, Maseratis and, yes, Lamborghinis.
The federal government’s own statistics tell a different story. Confirmed cases of intentional program violations — fraud — committed by SNAP recipients account for $64 million a year, or about 0.08% of all benefits issued annually, according to the most recent 50-state reports compiled by the U.S. Department of Agriculture.
Meanwhile a far bigger fraud wave has exploded over the past five years: organized theft from SNAP recipients. In 2025, $470 million was stolen electronically from beneficiaries — and thus from the U.S. taxpayer — according to data supplied to ProPublica by Propel, a company that provides a mobile app for SNAP recipients to check their account balances and transaction histories. More than 990,000 households that received food assistance last year had benefits stolen. (The reason it’s necessary to use data from a private company: The federal government has stopped tracking rates of this crime.)
ProPublica interviewed nearly 100 victims of SNAP theft, federal prosecutors, Secret Service agents, USDA officials, caseworkers and other experts to understand what’s behind this phenomenon and why more isn’t being done to stop it. The victims are almost all working people with families, or retirees, who have struggled to afford groceries in the current economy. Most didn’t learn about the crime until they were in a checkout line, only to have their benefit card declined.
funding boosts to SNAP during the pandemic temporarily increased benefit amounts, and profits could be considerable if you skimmed hundreds of people’s card information every month. Skimming teams, often run by Romanian gangs, pivoted. With cloned magnetic-stripe cards, they started buying up huge quantities of SNAP-eligible products like energy drinks and baby formula that are easy to store and resell.
“We’ve started many, many briefings saying that one of the biggest ways we’re going to fight this is to just get chips in the cards,” said Michael Peck, assistant special agent in charge of the Secret Service’s Criminal Investigative Division. Among the Secret Service’s lesser-known functions is investigating many financial crimes, and Peck leads its efforts against benefit theft. He said he and his team have delivered this message on Capitol Hill both at committee meetings and to individual members of Congress.
Yet congressional leadership has continually blocked legislation that would fund chip EBT cards nationally, despite universal support for the measure among Democrats and significant support among the Republican rank and file. For instance, House Committee on Agriculture Chairman Glenn Thompson, a Republican from Pennsylvania, said at a hearing in March that chip technology is “very effective.” But he shut down a bipartisan proposal to upgrade EBT cards with chips, citing unspecified budgetary constraints. (“Chairman Thompson is supportive of finding a fiscally responsible path forward for implementing policy that supports chip cards,” a committee aide said in a statement on his behalf. She added that “there was an appetite” for this reform among Republicans, but that Democrats weren’t willing to “find the budgetary offsets” for it.)
The Congressional Budget Office has yet to formally score the proposal, but multiple Hill staffers said they were told the total cost would be in the range of $215 million, as compared to the $600 million-plus annual loss on theft of SNAP and other benefits.
753,929 households were compensated.
In December 2024, a bipartisan spending agreement that included a provision to extend these reimbursements through 2028 was on the brink of becoming law. But Elon Musk, who had been named a leader of the new Department of Government Efficiency, attacked the legislation more than 100 times on X, pushing to “defund everything.” (Musk did not reply to a request for comment.) Trump then sank the deal. Victims of SNAP theft can no longer get any of their benefits replaced. And with the government off the hook for losses, there is now less incentive to put money into the solution.
In the 22 months since, the Trump administration has gone on to strip funds for addressing EBT theft from the USDA’s annual budget requests to Congress, while cutting at least 650 of the staff of the federal Food and Nutrition Administration, the subagency that oversees SNAP. More than half of the technical experts whom the agency had hired to help it develop EBT card security guidance have been pushed out, according to the Government Accountability Office.
“Many of us who were working on fraud, we’ve left the federal government entirely,” said Kym Ayodeji, who had been a data scientist in the SNAP program until she departed this spring. (FNA, the agency she worked for, is also responsible for tracking fraud committed by retailers, which is far more prevalent than that committed by beneficiaries.) Ayodeji said she and her colleagues had been working on ways to identify retailers where unusually large quantities of certain items had been purchased and addresses where purchases made with many different EBT cards were being delivered. Some of this work was indefinitely delayed by firings, early retirements, agency reorganizations and government shutdowns, she said.
SNAP is federally funded and supervised. Congress and the USDA traditionally mandate, and pay much of the costs for, major changes to the system, especially involving technical coordination between states. States evaluate applicants and administer the accounts of those who are approved.
That said, states are allowed to adopt chip cards on their own. California has nearly completed the transition, and Alabama and Oklahoma began rolling out new cards this year. A handful of others initiated the process in recent months — before the One Big Beautiful Bill Act, starting Oct. 1, cut 50% of states’ administrative funding for SNAP, which Alabama and the others had tapped to transition to chip technology.
The rest — about 40 states — have likely missed their window, unless Congress acts. They’re also waiting for regulatory guidance on EBT card security and chip card implementation that the USDA has been claiming for nearly four years it is planning to publish. (The USDA Office of Inspector General has found that the agency’s failure to issue this has allowed the theft of at least $555 million in SNAP benefits.)
State-level SNAP administrators have also been overwhelmed with the hundreds of new requirements that the One Big Beautiful Bill Act has saddled them with. For one, the law mandates that states adopt intensive new work requirements for older adults and others, resulting in voluminous additional monthly paperwork. And federal funds will be slashed even further next year if states don’t scramble to reduce their “payment error rate,” a figure that measures unintentional over- and underpayments in SNAP benefits. With all of this to juggle, many state officials told ProPublica that they’ve put chip card implementation on hold in order to implement the Trump law — one of whose ostensible goals was to reduce fraud.
All the while, that law has cut food aid for more than 1.2 million children. The USDA’s Rollins has said that nearly 6 million people in total have been “moved off SNAP” during the current administration.
newfound support from major retailer associations and big players like Walmart. There’s a chip card provision in the Senate’s draft version of this year’s Farm Bill, but the whole package is mired in a dispute between the parties — over the One Big Beautiful Bill Act’s cuts to SNAP funding — that looks like it will last until well after the midterm elections. This almost doesn’t matter, given that on the House side, the Farm Bill has already passed, and it contains no funding for chip cards.
And there’s been no movement on repeated bipartisan proposals from Sen. John Fetterman of Pennsylvania and others to renew the reimbursement program for families that have had their food assistance taken.
by as much as 83% in just two years, the governor’s office said. And Alabama officials claim their state hasn’t had any confirmed EBT theft cases since they began to distribute chip cards this year.
Still, chip cards aren’t the entire solution and doubtlessly, scammers will find clever ways to get around this technology. Moreover, SNAP recipients have largely been denied the basic services that banks and credit card companies use to block likely fraudulent transactions in real time. (Think of the email or text alerts you get from your bank when suspicious purchases are attempted with your card information.)
If states were to try this without federal help, they would have to individually pay for the additional security features. Most have gone for cheaper options like advising or requiring SNAP recipients to change their PIN regularly and to lock their card when not using it. Both are useful stopgaps but require constant diligence.
State and county SNAP caseworkers said they’ve been deeply frustrated that ever since Trump and Musk killed the reimbursement program, all they can do for victims is suggest they change their PIN more often and maybe try reporting the crime to local law enforcement. “It is a short conversation,” said Norman Vogele, a caseworker in Oregon. The date of the crime and the missing amount is recorded. “It isn’t clear why we even do that much,” he said, “as there is zero recourse.”
The Red Bull Crew stayed on the run for over a year, using looted food benefits to buy hundreds of thousands of dollars of bulk energy drinks in Oklahoma, Kansas, North Carolina, South Carolina and Georgia. After hundreds of hours of surveillance by the Secret Service, federal prosecutors and local authorities, all but one of the members were arrested and served sentences ranging from one to three years. They’ve all since been released, and some may have been deported.
Meanwhile, every day, SNAP theft sprees keep popping up in new corners of the country. A Secret Service official sounded gloomy about the pursuit of street-level operatives on its own, without policy change. “You can arrest them,” he said. “But essentially once you take them off the street, there’s 10 more that are doing the same thing.”
The first-person accounts paired with images throughout this article have been edited for length and clarity.
