On December 29, 2022, President Biden signed into law theConsolidated Appropriations Act, 2023 (the Act), which includes provisions forthe replacement of stolen Supplemental Nutrition Assistance Program (SNAP)Electronic Benefit Transfer (EBT) benefits with federal funds if benefits arestolen due to card skimming, cloning, and similar fraudulent methods (alsoreferred to as electronic theft or electronically stolen benefits).
The Act outlines that States will be able to replace benefitselectronically stolen from October 1, 2022, through September 30, 2024, usingfederal funds. State agencies were required to submit a plan to the UnitedStates Department of Agriculture, Food and Nutrition Service (FNS) for thereplacement of stolen benefits for this time period. This plan must be approvedby FNS before a State can begin issuing replacements for electronically stolenbenefits. The Act also requires FNS to issue rules on the replacement processby December 2023. Therefore, State plans/processes are temporary measures untila federal process is established.
Ohio’s plan was approved by FNS on May 11, 2023. Ohio’s approvedprocess for issuing replacements for electronically stolen benefits is outlinedbelow and is effective the date at the top of this letter. Once FNS issuesfinal rules for the permanent nationwide process, ODJFS will issue rules thatreplace this procedure letter. Please read all information thoroughly as thisletter contains policy requirements, county processing, system and reportingrequirements as well as ongoing requirements for stolen benefit processing.
1.What isconsidered electronic benefit theft?
Electronic benefittheft of SNAP benefits includes card skimming, card cloning, and other similarfraudulent methods.
a.Card skimming occurs when devicesillegally installed on retailer’s card reader machines, known as point-of-sale(POS) terminals, capture card data or record SNAP households’ PINs.
b.Card cloning occurs when criminalscan use the data captured by skimming or other means to create fake EBT cardsand then use those to steal from households’ accounts.
c.Other similar fraudulent methods ofobtaining SNAP benefits and EBT card data may include, but are not limited to, scammingthrough fraudulent phone calls or text messaging that mimic official ODJFS orcounty agency messaging and phishing schemes.
- Scamming is when an individual or group isfalsely convinced or swindled by someone or something to give up their benefitsand/or EBT card information over to an unauthorized individual or group.
- Phishing is a cybercrime where attackers attemptto deceive people into revealing sensitive information such as passwords, banking,and credit card details. Some phishing emails also contain malicious orunwanted software that attackers can use to track recipients’ onlineactivities, steal their personal data, or slow their computer.
2.Whattypes of SNAP benefits may be eligible for replacement due to electronic theft?
Replacement of SNAPbenefits that have been electronically stolen is limited to:
- Regular SNAP issuances (including initialprorations);
- Emergency Allotments (EAs); and
- Disaster SNAP (D-SNAP)
Pandemic EBT (P-EBT)benefits are NOT eligible to be replaced if electronically stolen.
Benefits must have beenelectronically stolen from October 1, 2022, through September 30, 2024.
3.How much SNAP benefits can be replaced due to electronictheft?
Replacement of electronically stolen benefits cannot exceed thelesser of the amount of: the benefits stolen from the assistance group (AG), orthe amount equal to two months of the monthly allotment of the AG issued immediatelyprior to the date when benefits were stolen.
- For example, if an AG reports that it lost $100on March 1, 2023 due to skimming and their last allotment was issued onFebruary 10, 2023 for $250 (2 months of their last monthly allotment is equalto $500) the AG would receive $100 in replacement benefits as it is the lesserof the two. If the same AG reports that it lost $600 on March 1, they wouldonly receive $500 in replacement benefits.
If a theft occurs over the course of several transactions andseveral days, calculations for the amount of replacement benefits will bedetermined based on the date of the first occurrence of theft.
- For example, an AG receives their $200 monthlyallotment on June 15, 2023, but realizes and reports on June 20 that $250 inbenefits were stolen in multiple transactions between June 17 and June 18. Inthis situation, the June 15 allotment is the monthly allotment that took placeimmediately prior to June 17, the first date of theft. The AG would receive thereported $250 loss in replacement benefits, as it is less than 2 months of theJune allotment, which totals $400.
An AG may only receive two instances of replacement ofelectronically stolen benefits in each Federal Fiscal Year (FFY) in Ohio.
- An AG could have received a replacement inanother state, but that replacement did not occur in Ohio and would not beconsidered in determining if the AG had received two replacements in Ohioduring the FFY.
- The two instances of replacement benefits arespecific to the exact AG composition that received the replacements. If therehave been changes in the AG composition since the previous replacements, theywill not be attributed to the new AG, even if there are some members from theoriginal AG. Thus, some individuals mayreceive more than two replacements in a year if they are in a new AG.
4.How does an AG request replacement of electronicallystolen benefits?
The AG must complete and submit to their local county agency theJFS 07011 “Statement Requesting Replacement of Electronically StolenSupplemental Nutrition Assistance Program (SNAP) Benefits”.
The JFS 07011 can be submitted to the county agency in person,by mail, fax or email.
The form cannot be signed electronically or by telephonicsignature.
5.What is the timeframe for the AG to submit the JFS 07011?
For SNAP benefits electronically stolen afterthe effective date of this procedure letter, an AG claiming SNAP EBTbenefits were electronically stolen must complete, sign, and submit the JFS 07011to the county agency within 90 calendar days of the date the benefits wereelectronically stolen, or within 90 days of receiving a letter from the countyagency indicating they may have been a victim of electronic theft (as describedin the ODJFS-Identified Electronically Stolen Benefits section below),whichever is later
6.What is the timeframe for the AG to submit the JFS 07011for benefits electronically stolen before the effective date of this procedureletter (i.e. retroactive claims)?
SNAP benefits that wereelectronically stolen prior to the effective date of this procedure letter areto be processed as follows:
- For AGs that previously reported being a victimof electronic theft between October 1, 2022 and the effective date of this procedureletter and were reported to ODJFS by the county agency, ODJFSwill send the AG the JFS 07011 and will inform the AG it may submit the JFS 07011 to request replacement of the stolen benefits by completing and returningthe form within 90 calendar days of the mailing date of the notice.
- For AGs identified by ODJFS as potentiallyhaving been a victim of electronic theft of benefits between October 1, 2022and the effective date of this procedure letter, ODJFS will send the AG the JFS 07011 and will inform the AG it may submit the JFS 07011 to request replacementof the stolen benefits by completing and returning the form within 90 calendardays from the mailing date of the notice.
- All other AGs who experienced electronic theftbetween October 1, 2022 and the effective date of this procedure letter willhave 90 calendar days from the effective date of this letter (September 15, 2023)to complete and submit the JFS 07011 to the county agency to requestreplacement benefits.
Benefits stolen beforeOctober 1, 2022 or after September 30, 2024 are ineligible for replacement inaccordance with the Act.
7.What is the timeframe for the county agency to processthe JFS 07011 and determine eligibility for replacement benefits?
Within 30 calendar daysof receipt of a JFS 07011, the county agency must review the replacementrequest, including details of the alleged stolen benefits, transaction history,etc, make an eligibility determination, send a notice of eligibility, andreplace benefits (if approved). If the 30th day falls on a weekend or holiday,the application must be approved by the previous workday.
If the county agencyreceives an incomplete JFS 07011(i.e. not all required fields are complete), aJFS 07105 “Application/Reapplication Verification Request Checklist” is to besent to the AG indicating what information is missing and allow 15 calendardays for the AG to return the requested information and/or completed JFS 07011.The 15 calendar days must occur within the 30 calendar days to process the JFS 07011. If one of the incomplete fields is the transaction amount, date andlocation, the county agency is to
send the AG a copy oftheir EBT transaction history with sensitive data such as PAN#, recipient#, SSNand FNS# removed/redacted.
When the AG requestsassistance in completing the JFS 07011 or obtaining their EBT transactionhistory, the county agency is to help the individual in completing the JFS 07011 to ensure the form is complete and accurate and/or provide a copy of theEBT transaction history.
8.Is anAG required to have a new EBT card before replacing benefits that have beenelectronically stolen?
Yes. Replacementbenefits cannot be approved or issued until a new EBT card has been issuedsince the last alleged electronic theft transaction on the JFS 07011.
The JFS 07011 willencourage AGs to request a replacement prior to submitting the form to thecounty agency. Upon receipt of the JFS 07011, if the county agency cannotconfirm in EPPIC that the card has been replaced since the last allegedelectronic theft transaction, the county agency must immediately submit arequest to ODJFS to cancel the compromised EBT card and request a replacementcard on behalf of the individual via this link: https://forms.office.com/Pages/ResponsePage.aspx?id=DQSIkWdsW0yxEjajBLZtrQAAAAAAAAAAAAEcKEmuxtNUMVI5V0tCVkZNTksyT0E0SVZZQUNBSlNFVS4u.
Within two calendardays, ODJFS will issue the replacement EBT card. An email will be sent back tothe county requestor notifying the county agency the card has been replaced.This is to then be logged on the JFS 07013 “Action Taken on Your Request forReplacement of Electronically Stolen Supplemental Nutrition Assistance Program(SNAP) Benefits” that a replacement was issued and should also be noted on thenotice described in question 11 below. Benefits are not able to be replaceduntil a replacement EBT card has been issued.
9.Whatare the requirements for approving a JFS 07011?
In order to approve aclaim, a county agency must confirm the following:
- The JFS 07011 was submitted timely and completeas described in Question 5 and 6;
- The alleged electronic theft transactionsoccurred between October 1, 2022 through September 30, 2024;
- The AG has not received two replacements forelectronically stolen benefits within the federal fiscal year;
- The claim that benefits were electronicallystolen is valid as described in Question 10;
- The AG’s EBT card has been replaced by eitherthe AG or ODJFS since the last alleged electronic theft transaction, and
- Approve only the allowable amount permitted inQuestion 3.
10.Howdoes the county agency validate the AG’s claim that their SNAP benefits wereelectronically stolen?
A claim is valid ifthere is evidence of two or more of the following:
- Transaction(s) occurred at FNS retailer known toODJFS as previously processing fraudulent transactions;
- Even dollar transaction, high dollartransaction, multiple transactions within short period of time
- High Dollar includes transactions (such as beingover $1,000.00)
- Online transactions where delivery occurred at alocation other than the customer’s address (customer attestation or retailer attestationis sufficient)
- Depleting account balance entirely or leaving asmall amount (such as less than $5.00)
- Transactions outside of customer’s normalshopping habits over the previous twelve (12) months
- Other evidence supports the signed statementfrom the AG that they had no knowledge of the transaction and did not authorizeanother to make the transaction (e.g. a police report).
* Police reports cannot be required by thecounty agency. Clients may voluntarily submit them as supportive evidence of electronictheft of their benefits.
11.Whenis the JFS 07011 or one or more of the transactions in the claim to be denied?
An AG’s JFS 07011 orone or more of the transactions is to be denied for one or more of thefollowing reasons:
- The AG fails to submit the replacement requestform timely as described in questions 5 and 6.);
- The replacement request form was submittedtimely but not completed after the county agency requested it to be completedand returned within 15 calendar days;
- The alleged loss/theft transaction occurredprior to October 1, 2022 or after September 30, 2024;
- The AG has already had stolen benefits replacedtwice during the federal fiscal year;
- Two or more validation claim criteria have notbeen met;
- The AG reported a lost or stolen EBT cardassociated with the unauthorized transactions was not caused by electronictheft; or
- The AG gave card and PIN to another person andbenefits were subsequently stolen/misused.
- When the requested replacement amount exceedsthe lesser of the amount of benefits stolen from the AG or the amount equal totwo months of the monthly allotment of the AG immediately prior to the datewhen benefits were stolen. The county agency would provide an approval for theportion of the transaction(s) that is up to the allowable amount and deny anyremaining transaction(s) for this reason as described in Question 12below.
12.How is the AG notified of the eligibility determinationof its JFS 07011?
Within 30 calendar days of receiving the JFS 07011, the countyagency is to issue the JFS 07013 notifying the AG of the determination for therequest for replacement benefits that were stolen electronically.
There may be some transactions that are approved and sometransactions that are denied if only some transactions met the criteria forapproval. Additionally, some requests for replacements may be more than theallowable amount and only a certain amount can be approved. Therefore, it ispossible (and allowable) for an approval and denial for stolen benefits to bedocumented on the same JFS 07013 for a replacement request. The notice shouldlist the allowable amount under “Approved” while the remaining unapprovedamount would be “Denied”.
The denial reason(s) must be listed on the JFS 07013.
13.What if an AG disagrees with a denial or the amount thatwas replaced?
An AG has a right to a state hearing to contest the denial orthe amount of the replacement issuance. The AG must request a state hearingwith 90 calendar days of the JFS 07013 date.
Replacements shall not be made while the denial or delay isbeing appealed.
Ohio Benefits (OB) and the Enterprise Document ManagementSystem (EDMS):
Processing Replacements in OB:
To issue replacement benefits, complete the following in OB:
1.Add a case flagutilizing the existing OB system process.
a.Add“Electronically Stolen Benefit Replacement” as the case flag title with a flagtype of “State Study.”
b.Use the associatedcase flag notes section and enter the following information about the approvedbenefits: <List all members of the AG> have received a replacement in theamount of <insert replacement amount> due to SNAP benefits beingelectronically stolen by skimming, cloning, or other fraudulent activities.This is this assistance group’s <1st or 2nd> replacement. Thisreplacement procedure is in accordance with FACT XX.
2.Utilize theexisting OB system process for replacing benefits for AG misfortune
a.In the“Requestor Explanation” field for the manual EDBC, enter the followinginformation: “Approved SNAP benefits application dated <enter date the JFS 07011 received> in the amount of <total dollar amount of approved benefits>This replacement procedure is in accordance with FACT XX.”
b.The Approverconfirms to correct flag has been added to the case. In the “Approver Response”field for approving the manual EDBC, enter the following information: “SNAPBenefits approval for electronically stolen benefits”.
3.Enter journalnotes with details of replacement requests approved or denied.
To ensure the AG does not receive more than two replacements ina federal fiscal year, review AG transaction history, trend data, AG online andIVR account history, OB for previously issued replacement benefits, and theattestation of the AG.
EDMS:
Submitted JFS 07011 as well as the accompanying JFS 07013 withthe determination of the approval and/or denial is to be scanned and storedinto EDMS.
ODJFS-Identified Electronically Stolen Benefits:
As an ongoing benefit theft prevention measure, ODJFS is workingclosely with the United States Department of Agriculture, Office of InspectorGeneral (USDA OIG), and the Ohio Investigative Unit (OIU) to identifyfraudulent activities at retailers that accept SNAP EBT. An ongoing list ofsuspicious retailers can be found on the Q drive here: Q:\Public\BPI\FraudControl Section\SNAP Replacement\Suspicious Retailer List
ODJFS, Office of Fiscal and Monitoring Services, Bureau ofProgram Integrity (BPI) tracks and identifies retailer transactions whichappear to be mass efforts of skimming, cloning or other fraudulent activitytargeting SNAP benefits.
Transaction history is then broken down into individuallyimpacted AGs. This information will be disseminated to the county agencies asfollow:
- Beginning the effective date of this letter,every Friday BPI will send a report to each county agency’s identified FraudControl Contact of AGs possibly impacted by electronically stolen SNAPbenefits.
If there are no transactions for a particular week, a reportwill not be sent.
If you would like this information to be emailed to more thanjust the county Fraud Control Contact, please reach out to your Fraud ControlSpecialist at ODJFS.
- Within 10 days of receipt of the spreadsheetfrom BPI, the county agency is to review the list of cases and contact the AGby mailing the AG the letter provided by BPI with the JFS 07011 and provide areturn envelope. The letter provided by BPI is to be saved to your computer andlocally printed. This form is not able to be centrally printed.
An AG may have already contacted you regarding electronicallystolen benefits and/or submitted a JFS 07011. Therefore, it is important tocross-check the list provided by BPI with any information you may have alreadyreceived from the AG.
- If the AG chooses to request a replacement ofelectronically stolen benefits, they must submit the JFS 07011 within 90 calendardays of the mail date of the letter.
- The JFS 07011 is to be processed as outlinedabove once/if received from the AG.
As a reminder, please continue to report to BPI if your countyagency is made aware of possible skimming, cloning or other fraudulentactivities at retailers.
Reporting Requirements:
ODJFS is required to report to the United States Department ofa*griculture, Food and Nutrition certain information about electronic theftclaims and transactions. Therefore, county agencies will have to record certaindata for each replacement request received by completing a Microsoft Form (MSform) beginning with the effective date of this FACT. BPI will provide the MSForm that is to be used by the county agency to report specific informationabout the claims, but will include the below information:
For reporting purposes, a claim is a JFS 07011 that is receivedby the county agency. The JFS 07011 will have one or more transactions listedas being due to electronic theft.
1.Total number ofstolen benefits claims;
2.Total number ofapproved stolen benefits claims (if any transaction isapproved on a JFS 07011, then the county agency would report the JFS 0711 asapproved);
3.Total number ofdenied stolen benefits claims due to:
- invalid claims,
- claims from households that met thetwo-replacement limit per FFY, and
- untimely submitted claims;
4.Total number ofhouseholds that submitted stolen benefits claims:
- total number of households that submittedapproved claims, and
- total number of households that submitted deniedclaims;
5.Total number offraudulent transactions, total number of fraudulent transactions from approvedclaims, and total number of fraudulent transactions from denied claims;
6.Total value ofbenefits determined to have been stolen; and,
7.Total value of replacedstolen benefits.
The MS Form is to be completed within the month for eachdetermination made for that month.
Forms
The following forms were created to processing requests forelectronically stolen benefits. These forms are not generated out of OB and arelocated on Forms Central:
- JFS 07011“Statement Requesting Replacement ofElectronically Stolen Supplemental Nutrition Assistance Program (SNAP)Benefits”.
- JFS 07013 “Action Taken on Your Request forReplacement of Electronically Stolen Supplemental Nutrition Assistance Program(SNAP) Benefits”
Questions?
For policy questions, please contact Program Policy &Systems at OFA-PPS@jfs.ohio.gov.
For questions about ongoing monitoring of electronically stolenbenefits, or reporting, please contact BPI at BPI_FCS@jfs.ohio.gov.
For OB processing or EDMS questions, please contact the HelpDesk at OB-IMS_HELPDESK@jfs.ohio.gov.
For questions about card replacement, please contact the EBTarea at EBT-EPC@jfs.ohio.gov.
