Friday, May 25, 2012

Feds hope new rules will help curb food stamp fraud

It costs taxpayers $750 million per year, and the same problems are cropping up in new forms.

People are now committing food stamp fraud by hawking their stamps and electronic benefits transfer cards on websites like eBay and Craigslist.

Now the federal government is proposing new rules to help states combat against the fraud. The U.S. Department of Agriculture wants to give states more power to investigate people who claim they repeatedly lose their cards. Under the rule, states would be allowed to ask for a formal explanation when a recipient has requested more than three cards in a year’s time. Depending on the outcome of the investigation, someone could be declined additional cards. Deseret News