Phishing scams and credit card fraud swipe more than $500,000 from NC food stamp benefits

RALEIGH, N.C. (WTVD) -- More than half a million dollars were stolen over a two-week period from North Carolina's Food and Nutrition Services.

It happened in late August and early September. The state agency said the money was stolen through phishing scams and credit card fraud.

"The impact when families lose those dollars that they can spend directly at the grocery store is huge," said Jason Kanawati Stephany, Vice President of the Food Bank of Central & Eastern NC.

The food bank is part of a nationwide network that distributes more than 100-million meals across the country nationally -- but Stephany said it pales in comparison to what Food and Nutrition Services (FNS) provides. That means a scam like this carries major impacts.

"Those impacts are felt really intimately (by) families, many of whom have children or seniors at home," he said.

North Carolina Department of Health and Human Services officials are urging vigilance for those enrolled in the FNS program as investigators continue to look into how the theft happened. They said since October 2022, more than $2.7 million of FNS money has been reported stolen through similar schemes.

"These criminals are sophisticated, and the methods they're using to target EBT cards seem to be changing and evolving all the time," said Jerquitta Hicks-Smallwood, Deputy Director for NCDHHS's Food & Nutrition Services.

Hicks said participants should check their EBT balances often, pick a difficult pin and change that pin often, and monitor for any suspicious activity at all times. In the meantime, they said the people targeted have options.

"They do seek out a replacement for the benefits. They can do that by contacting their local county department of social services," Hicks-Smallwood said.

The food bank said it is there to help too, and that more information is available on its website.

"So right now is the time. If you have lost benefits, definitely go to that website, check it out, there are resources available in your neighborhood," Stephany said.

ABC11 reached out to the Attorney General's office to ask if they're involved in the investigation into the stolen money, but we have not heard back.