A Swipe Away from Demolition

5

Some would say a credit card holds more power than many wish to carry. It is all too tempting to see an item and purchase it just by quickly running the credit card through the machine. The consequence of acting on the urge to buy is evident in the hit to your bank account. According to an article in The State Journal, the power of swiping a card isn’t limited to just credit cards; it can also be overpowering in the form of food stamp Electronic Benefit Transfer (EBT) cards—and the consequences can be even harsher.

The article tells of a West Virginia resident who took advantage of the simplicity of swiping a card for easy money, and in the process broke the law. The article reports that he and a team of two other fraudsters targeted the Supplemental Nutrition Assistance Program (SNAP), and the trio managed to collect approximately $127,000 in SNAP benefits between June 2010 and February 2012. The leading fraudster, owner of a run-down convenience store, led the scheme supported by his two store clerks, who acted to collect SNAP benefits in exchange for money or ineligible goods. (But the boss told us to do it!)

Here’s how it worked? the clerks, and even the owner himself, would swipe the SNAP EBT card, providing customers with about $0.50-$0.60 on the dollar. (Sixty cents to the dollar? Wow, that’s generous. Most fraudsters usually go ”halfsies.”? A U.S. Attorney commented on the case: ”The…store wasn’t just a crooked business; it was a dangerous blight on this city.’? The judge sentenced the leading fraudster to six months of house arrest as part of a three-year term of supervised release. The other two fraudsters received three years probation, six months on house arrest, and each individual will have to pay $127,000 in restitution. (A two-year scheme and they get a few months of house arrest?)Source: Today’s ”Fraud of the Day” is based on an article titled, ”Former Huntington Convenience Store Owner Receives 6 Months,” written by Andrea Lannom and published by The State Journal on January 7, 2013.

Read More

SHARE
Previous articleWheels of Misfortune
Next articleStopped Dead in His Tracks
Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.