Legal Services NYC Sues New York State Over Its Failure to Convert EBT Swipe Cards to More Secure Chip Cards, Leaving Thousands of SNAP Recipients at Risk of Food Insecurity 

Legal Services NYC filed a new federal lawsuit today on behalf of seven plaintiffs and one advocacy group in the U.S. District Court for the Southern District of New York against the New York State Office of Temporary and Disability Assistance (OTDA) for failing to protect SNAP recipients from widespread electronic theft known as “skimming.” 

The lawsuit alleges that New York’s failure to convert magnetic stripe-only Electronic Benefit Transfer (EBT) cards to more secure chip cards has left tens of thousands of low-income residents exposed to repeated theft, food insecurity, and financial harm. Plaintiffs are seeking a court order to force the state to transition to secure chip-enabled EBT cards and compensate victims for unreimbursed losses. Other states, including California and Oklahoma, have taken concrete steps to protect SNAP recipients by rolling out chip technology, but New York lags far behind with no plan or timeline in place. 
 
“When my benefits were stolen, I felt completely helpless,” said Yiraldy Rodriguez, a Bronx resident and one of the plaintiffs in the case. “I had no income at the time, and suddenly I had no way to feed my kids. I had to rely on my mom just to put food on the table. We were stretching meals, skipping meals, just trying to get by. It’s terrifying knowing this can happen again if no changes are made to keep our EBT funds safe.” 

“Skimming takes advantage of our most vulnerable New Yorkers,” Executive Director of Red de Pueblos Trasnacionales, one of the plaintiff organizations in the lawsuit, Marco Castillo said. “We see this impact every day when our community members are unable to feed their families. The solution is simple and cost effective- New York State must follow suit by putting chips on all our EBT cards.” 

Federal law requires states to provide timely, accurate, and fair delivery of SNAP benefits and adopt evolving technology to protect against fraud and abuse, which, the lawsuit argues, New York is failing to do, disproportionately harming communities already facing economic hardship.  

Between 2023 and 2024, New York State reported approximately 85,000 cases of SNAP skimming, totaling nearly $40 million in stolen benefits — nearly 20 percent of the national total. Nearly 3 million people receive SNAP benefits across New York State who remain at risk as long as New York refuses to update the EBT card. 

The need for New York to act is even more urgent now that the federal program for reimbursing stolen SNAP benefits ended in December 2024, leaving anyone who experienced EBT theft with no way to recover their benefits. At the same time, SNAP recipients are also facing the possibility of new federal restrictions that make it harder for them to receive benefits, including expanded work requirements, restricted exemptions for families, and demands for increased state financial participation. 

“No one should be forced to make the impossible choice between going hungry or paying for basics like rent or healthcare because their SNAP benefits were stolen,” said Alison Roberts, a LSNYC staff attorney involved in the case. “This program is a lifeline for so many New Yorkers and losing access to it can be devastating. There’s no excuse for the state to keep using outdated technology. New York should follow the lead of other states that have already strengthened the security of their EBT cards to ensure this critical benefit reaches the people who need it.” 

Plaintiffs in the case include an 86-year-old Manhattan woman with mobility issues who lost more than $1,100 in benefits and had to forgo medical appointments due to lack of funds for transportation; a Bronx mother of two who had to rely on her mother to help feed her children after her account was drained; and a Bronx plaintiff in poor health who had his benefits stolen and was forced to rely on a food pantry, among others. These plaintiffs, along with other low-income New Yorkers, continue to live in a constant state of fear that their SNAP benefits will be stolen again and that they have no way to recover the funds. 

The plaintiffs seek a court order requiring OTDA to upgrade its EBT system, compensation for unreplaced stolen benefits, and damages for the financial and emotional hardship caused by benefit theft. 

“The time to act is now! The scourge of skimming continues to cause suffering for families who rely on SNAP,” said Assemblymember Khaleel Anderson, chair of the Task Force on Food, Farm and Nutrition Policy. “Years ago, I learned of a Far Rockaway grandmother who had lost $900, forcing her to choose between food or presents during the winter holidays. No one should lose the ability to feed their families because of preventable fraud. This lawsuit from Legal Services NYC will fast track secure chip technology implementation. As chair of the Task Force on Food, Farm and Nutrition Policy– and as someone who has relied on SNAP, I know how vital these benefits are, and we must ensure families are protected. Here in the 31st Assembly District, I have been a strong advocate against SNAP skimming for years and will continue to fight for solutions, but OTDA must do its part to protect New Yorkers from this deeply harmful fraud. We must modernize EBT security one way or another and we must do it now!”  

“Through legislation and direct advocacy with the Executive Chamber and OTDA, I’ve been pushing for EMV chip-enabled EBT cards for more than four years,” said Senator Roxanne J. Persaud, chair of the Senate Social Services Committee. “In an ideal world, the USDA would directly take on skimming and create a national standard for EMV chip-enabled cards but, absent that, New York State needs to roll out technology to protect SNAP and cash assistance beneficiaries from exploitation and stolen benefits. Fraudsters have seized millions of dollars’ worth of benefits from vulnerable New Yorkers. We have tools within reach to fight back – there must be a stronger will to do so, and I urge the Executive to prioritize this important funding.  The longer we delay, more harm will come to our vulnerable benefits recipients.” 

“We had an opportunity to significantly reduce SNAP benefit theft and protect New Yorkers by passing my bill to transition the SNAP EBT cards to a secure chip-enabled card—but the state failed to act,” said Assemblymember Jessica González-Rojas. “This lawsuit is now a necessary step toward addressing the widespread and ongoing issue of stolen benefits. Victims of SNAP skimming are experiencing severe economic hardship, and without these essential resources, many are suffering unnecessarily from hunger. Food insecurity is a life-or-death issue. The state’s inaction risks the health, well-being, and lives of thousands of New Yorkers. We must act now by transitioning EBT cards to secure chip-enabled cards. New Yorkers cannot afford to wait.” 

“When the state legislature proposed funding for the switch to chip cards, the money was left out of the final state budget. We owe it to New Yorkers to step up and protect recipients from the rampant fraud and skimming that continues to plague our communities,” said Assemblymember Marcela Mitaynes, who sponsored a bill that would establish a SNAP and cash assistance compensation fund for victims of theft. “Seniors, families, and individuals across New York State should not be punished for the state’s negligence. While they wait for NYS to act, we must offer them reimbursement for stolen funds and establish a SNAP fraud victims compensation fund. We must ensure continued and reliable access to SNAP benefits.” 

“AAPI older adults, especially those with limited English proficiency and lower socioeconomic status, are incredibly vulnerable to this form of exploitation,” said President and CEO of Homecrest Community Services Wai Yee Chan. “We must implement every possible safeguard to prevent this crime and ensure victims are made whole. We cannot allow our older adults to go hungry or face a gauntlet of hurdles to access the benefits they need and deserve.”