Maryland SNAP benefits stolen: Contract promises new chip technology

The Maryland officials have approved a new contract with Conduent to enhance the security features of electronic payments for food and cash assistance in the state. The contract includes encrypted chip technology to protect users from theft, specifically targeting the Supplemental Nutrition Assistance Program (SNAP) users who have been victims of card skimming. With over 400,000 households in Maryland receiving benefits, the contract with Conduent will cost nearly $20 million over the next five years.

The decision to implement chip technology comes after a surge in theft of SNAP benefits in Maryland, with over 33,000 claims reported in the last year. Governor Wes Moore signed a bill in April 2023 mandating microchips in all EBT cards to prevent further theft. However, the process has been slowed down, leading to the implementation of other security features such as fraud alerts and card locking via cell phones.

There was a delay in approving the contract due to a dispute from a company that lost out on the bid, but the Board of Public Works eventually approved it. Maryland’s Department of Human Services Secretary, Rafael López, emphasized the importance of the enhanced security features in protecting vulnerable residents and reducing the burden on taxpayers who reimburse stolen benefits. Failure to approve the contract would mean a two-year delay in implementing these crucial security measures. Despite some opposition, the board approved the contract, with Comptroller Brooke Lierman highlighting the risks of not proceeding with the implementation of chip technology.

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