Today, the department announced it was proposing rules that would allow states to demand formal explanations from people who seek more than three replacement cards a year. Those who refuse to comply can be denied further cards.
Why is the government doing this? While the biggest source of food stamp fraud comes from retailers who allow customers to turn in their benefits cards for lesser amounts of cash, they are seeing an increasing number of people selling or trading their benefits cards, including over web sites like eBay (NASDAQ:EBAY) and Craigslist. Overall, food stamp fraud costs the government $750 million a year, on a $75 billion program. Read