Elon Musk warned on X that "hundreds, maybe thousands" of fraud rings may be stealing SNAP benefits via EBT card skimming, though federal agencies have not verified the numeric claim. GAO found states replaced more than $320 million for nearly 679,000 households between Oct. 2022 and Dec. 2024 and reported most EBT cards lacked embedded microchips. The Justice Department has brought dozens of charges, including cases tied to Romanian networks and a San Diego crackdown that alleged over $310 million stolen from California beneficiaries.
Elon Musk Warns 'Hundreds, Maybe Thousands' Of Fraud Rings Stealing SNAP Benefits — GAO: States Replaced $320M
NATIONAL HARBOR, MD, USA — February 20 2025: Elon Musk speaks with Newsmax Host Rob Schmitt on day 1 of the 2025 Conservative Political Action Conference. (Credit: Image via Shutterstock)
Elon Musk warned on X that the United States may be losing taxpayer-funded Supplemental Nutrition Assistance Program (SNAP) benefits to "hundreds, maybe thousands" of fraud rings after recent reporting highlighted organized networks using Electronic Benefit Transfer (EBT) card skimming.
"There hundreds, maybe thousands, of fraud rings of almost every nationality stealing money from US taxpayers," Musk wrote in reply to a Wall Street Journal post. Federal agencies have not independently verified his numerical estimate.
GAO Findings And Scope Of The Problem
The Government Accountability Office (GAO) says perpetrators range from lone actors to organized crime groups, but it does not publish a nationwide count. In a 2025 review, GAO found that states replaced more than $320 million in stolen SNAP benefits for nearly 679,000 households between October 2022 and December 2024. The watchdog cautioned this figure understates total theft because it covers only approved replacement claims. Separately, federal authority to replace benefits stolen after Dec. 20, 2024 has expired.
How The Thefts Are Carried Out
Investigations and prosecutions show multiple tactics. One common method involves installing skimmers on point-of-sale terminals to capture magnetic-stripe data and PINs, which are then written onto cloned cards for ATM withdrawals. GAO also reported most SNAP EBT cards lacked embedded microchips in its 2025 review — a security feature common on commercial payment cards that can deter skimming.
Recent Enforcement Actions
The Justice Department has pursued numerous cases. In April, prosecutors charged five Romanian citizens in an alleged conspiracy to steal nearly $1 million in SNAP benefits across Ohio and California; authorities allege the group used skimmers and cloned cards. In addition, DOJ officials said a long-running San Diego crackdown has produced more than 50 defendants charged since 2023, with authorities reporting that over $310 million was stolen from California EBT beneficiaries between June 2022 and January 2026.
Benefit fraud investigations have also included schemes involving stolen identities, fraudulent applications, and retailer trafficking. In New York, prosecutors charged six people in an alleged $66 million SNAP fraud and bribery scheme. USDA data published in June pointed to scrutiny of SNAP payment errors as well — a category that is distinct from intentional fraud.
Responses And Next Steps
The U.S. Department of Agriculture (USDA) is supporting state efforts to transition to chip-enabled EBT cards and to adopt other anti-fraud measures. Federal and state agencies continue to pursue both technical upgrades to EBT systems and criminal investigations into organized networks exploiting the program.
Bottom line: Authorities and watchdogs confirm significant losses and coordinated criminal activity, even if a precise national tally of fraud rings remains unverified. Policy changes, technology upgrades and sustained enforcement are central to reducing future thefts.
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