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Victims, lawmakers critical of Maryland’s response to stolen benefits

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Posted at 8:03 AM, Aug 09, 2022
and last updated 2022-08-09 08:12:00-04

BALTIMORE — Victims and lawmakers are growing frustrated with the state’s response to stolen food stamps and federal cash assistance.

The amount stolen so far this year is more than triple that of last year, but Governor Hogan nor the Department of Human Services has outlined what they plan to do about it.

“About 1:36 in the morning, an ATM withdrawal of $1,000 was taken off my card,” said Kristian Herbert, who uses her benefits to support her three children and younger sister.

Paris Respass recently lost $500. “I woke up about 6, 7 o’clock in the morning, they said that my check was gone,” she said.

And Jamee A. had her Temporary Cash Assistance (TCA) benefits swiped twice in two months, despite getting a new card and pin number. “The money came out, $1,000 came out on 725 Eden Street at 1:36 a.m.,” she said. “I’m in my bed asleep at 1:30 a.m. with the card under my mattress.”

These women are among the 453 reports of stolen food stamps or TCA this year. Through July 31, around $344,000 in benefits were reported stolen compared to $92,500 in all of 2021.

Maryland Department of Human Services Secretary Lourdes Padilla hasn’t yet agreed to speak with WMAR-2 News Mallory Sofastaii about this increase in fraud and state senators are feeling stonewalled.

RELATED: A race to the ATM: Families having to beat thieves to their own food and cash assistance

“I asked if the data held by the Department had been compromised in a cybersecurity attack or data leak at some point, they have not answered that question,” said Senator Katie Fry Hester (D-Howard and Carroll Counties), Senate Chair for the Joint Committee on Cybersecurity, Information Technology, and Biotechnology.

Hester sent a letter in June to DHS. A month later, she received a response.

“It didn’t really answer the majority of the questions,” Hester said.

She’s also asked several times for the contact information for the state’s liaison at Conduent, the vendor being paid $30 million dollars in state and federal funds to implement and operate the electronic benefits transfer system (EBT).

“I also asked the Department how they planned to increase the security of the EBT cards to prevent the fraud, which is obviously increasing. I have not received a response,” Hester stated.

A DHS spokeswoman has said it's in ongoing communication with Conduent about enhanced security features, but didn’t say when they would be implemented.

When asked why DHS isn’t reimbursing victims, Lauren Graziano, Director of Government Affairs wrote:

“Regarding reimbursement of stolen benefits, federal regulations do not allow states to replace stolen SNAP benefits with federal funds. Currently, there are no state funds appropriated to reimburse victims of this or other types of fraud. As this is a federal program, we would encourage stakeholders to address the potential need for additional funding with the Maryland Congressional Delegation.”

“Why do you think the Department isn’t doing more to help victims?” Sofastaii asked Hester.

“They don’t have the staff. The staff that’s working there has been there a long time and is burned out, often 30 percent of the jobs are unfilled. That is not an excuse. But ultimately, if this was a priority of the governor, it would be getting done,” Hester responded.

California’s law allows replacements when benefits are stolen. In Maryland, that’s not the case.

“I think it’s ridiculous in a state that has a $6 billion Rainy Day Fund that you need legislation to tell them to reimburse these victims of theft, $300,000 or whatever the total is now, but if that’s what it’s going to take, then that’s what I’m prepared to do,” said Hester.

Victims can apply for other state assistance programs, however, that takes time.

Congressman Dutch Ruppersberger's office is also working on drafting federal legislation in response to this nationwide issue.

If you’re the victim of this crime, you’re encouraged to apply for emergency cash assistance through the Consumer Portal or by visiting any of the 24 local Departments of Social Services, and by calling 1-800-332-6347 (TTY 1-800-735-2258).

And contact your local elected officials. You can find their information by clicking here. Type in your address under the "lookup" tab and you'll have the option to email all the checked legislators.

RELATED REPORTS:
Maryland families report $286,000 in food stamps and cash stolen by thieves

Maryland families robbed of $170k in SNAP and cash assistance in last two months

Families are losing food and cash assistance to thieves; state says it’s unable to replace benefits