Hackers are stealing Utahns' food stamp benefits and reimbursement funds have run out

SALT LAKE CITY – It's a situation no one wants to find themself in: waiting in line at the grocery store only to realize you have no money in your account and cannot make your purchase.

"Besides the embarrassment, it's the fear," said Lisa Mickelsen. "Like, what do you do now?"

Mickelsen, who is disabled and relies on food stamps to get by, knows that feeling all too well. She's one of several Utahns who reached out to the KSL Investigators after learning hackers had drained their SNAP benefits for the month.

"I guess it goes on at 12:01, OK? At 11 a.m. that morning they were gone," she said.

Mickelsen showed a transaction on her account revealing all her grocery money had been spent at a deli in Philadelphia, a city she's never visited, despite her consistent efforts to change her password and PIN to avoid fraud.

"I've replaced my card four times," she said. "I have had at least 25 (personal identification numbers) written down for this same activity."

In the past, Mickelsen and others said they were able to call the state, report fraudulent spending, and get reimbursed for stolen benefits. But now, an automated recording informs callers of a different reality.

"Replacement of stolen benefits was a federally instituted and funded program that Congress is no longer funding," the voicemail recording states. "SNAP and financial benefits stolen on or after Dec. 31, 2024, are ineligible for replacement benefits."

Mickelsen and others in her same situation are simply out of luck. The recording goes on to urge Utahns to call 211 to get connected with services.

Utah's Department of Workforce Services said roughly 83,000 Utah households rely on SNAP benefits. Becky Wickstrom, a public information officer with the department, said she is not aware of how many Utahns have experienced fraud related to their SNAP benefits.

"We know when this happens to a family or an individual it can be devastating," she said.

Wickstrom said the department's systems are secure, but hackers are targeting individual EBT benefit cards across the country. She said federal funds that were being used to reimburse people for benefits lost to hackers have run out.

"It looks like a credit card, but it really functions like cash," she said. "So, once the balance is spent, it's gone, unfortunately."

When asked what's being done to fix the problem, Wickstrom said, "This is a federal program. So, we're working closely with our federal partners and the card vendor to determine what additional security measures can be put in place. Unfortunately, there's not one magic solution."

Wickstrom said the state is negotiating another contract with the same card vendor that will begin in the fall. She said there are two card vendors in the country, and Utah is one of more than 20 other states using the same vendor.

"Our card vendor is at the table with us to find new solutions," she said.

Still, there isn't a solution quick enough to help Mickelsen buy groceries this week. After speaking with KSL, Mickelsen headed to a nearby church running a food bank to wait for something to eat. Volunteers there said they've noticed an uptick in people showing up seeking food.

"We're smart enough to send (a man) to the moon, but we're not smart enough to figure this out? This is nuts," Mickelsen said. "This should not even be an issue."

For Utahns like Mickelsen who are changing their PIN and passwords regularly and still having issues, Wickstrom suggested changing the PIN the night before funds are deposited and using those funds promptly.

"We are finding that people who save up their benefits are more at risk for theft, especially online," she said. "So, use your benefits for what you need right now. Don't let those balances build up."

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