Bringing Proven Financial Safeguards to EBT Cardholders
Preventing EBT Theft
Imagine two families shopping at the grocery store, one using a credit card and one using an Electronic Benefit Transfer (EBT) card. If someone tries to steal the credit card number, a suite of security protections kicks in: the fraudulent transaction may be blocked, any loss is capped, and the stolen funds usually come back. Steal the EBT card’s number and it’s a different story—a family could lose an entire month’s worth of groceries.
Security shouldn’t be a luxury. And yet, thousands of families who rely on nutrition assistance to feed their families are at risk of their benefits being stolen, simply because EBT cards don’t have the same theft detection technology that any credit or debit card has.
There shouldn’t be a two-tiered system at the grocery store. We have the technology to fix this problem—we just need public and private sector leaders to take action.
That is why the Aspen Institute Financial Security Program, with support from JPMorganChase and AARP Foundation, is working with states, federal leaders, and private-sector experts to advance practical, participant-centered protections against EBT theft. A central part of this work is helping states pilot real-time transaction blocking—a safeguard already widely used across financial services, but currently unavailable for EBT cardholders.
Why EBT Theft Prevention Matters
EBT theft is increasing and evolving. Every year, families across the country who rely on SNAP to put food on the table and access other essentials lose millions to criminal activity.
EBT theft threatens the financial and food security of families and undermines confidence in the systems that deliver essential public benefits. As criminals adopt increasingly sophisticated tactics, states need a layered approach to security that can adapt as quickly as the threats do.
A Proven Safeguard: Real-Time Transaction Blocking
Luckily, the technology for a comprehensive solution already exists. Banks and credit card issuers have used real-time transaction blocking for more than a decade.
Anyone who has received a “Did you just try to use your card?” text from their bank can appreciate the peace of mind that comes from this technology. Across financial services, real-time transaction blocking is regarded as a best practice and has contributed to significant reductions in credit and debit card fraud. Extending the same type of protection to EBT cards should be common sense, and would help close the unnecessary security gap that leaves both SNAP participants and taxpayers out to dry.
Real-time transaction blocking complements user-controlled tools already available in many states, including card locking, out-of-state transaction blocking, and online purchase blocking. Unlike broad category-level restrictions, real-time transaction blocking can protect participants whose normal shopping patterns do not fit neatly within those controls.
For example, someone living near a state border may regularly make legitimate purchases in another state. Real-time transaction blocking can evaluate the risk of each transaction without requiring a participant to block all out-of-state purchases.
Supporting State-Led Real-Time Transaction Blocking Pilots
Aspen FSP is supporting state agencies as they explore, design, implement, and evaluate real-time transaction blocking pilots. These pilots began with a small group of states in 2026, with additional states able to join on a rolling basis as interest and capacity allow.
The cohort model allows participating states to learn from one another, address common implementation challenges, and engage with EBT processors and federal partners with greater alignment. Each state retains full decision-making authority over the design and implementation of its own pilot.
Aspen FSP provides pilot states with end-to-end support at no cost, including:
- Funding expected to cover most or all state costs associated with necessary EBT processor changes
- A flexible roadmap covering pilot design, contracting, testing, launch, evaluation, and potential expansion
- Regular working sessions with other pilot states
- Technical assistance from technologists, procurement experts, former state leaders, and other specialists
- Independent evaluation support
Pilots are designed to launch real-time transaction blocking for a subset of SNAP participants, minimize disruption, measure the technology’s impact, and help states determine whether and how the technology could be expanded.
Building a Stronger EBT Security System
Real-time transaction blocking is one part of a broader effort to bring stronger and more responsive safeguards to EBT programs. While states and the federal government are already starting to take important steps to expand protections like expanding card-locking tools, blocking certain transaction types, and moving toward chip-enabled EBT cards, these solutions alone won’t solve this crisis. It will take time for every SNAP participant to receive a chip card and for every retailer to accept one. Criminals will continue looking for ways around broad controls such as blanket out-of-state or online transaction blocks. One-time technology upgrades aren’t enough.
Meaningfully reducing EBT theft will require a comprehensive, evolving strategy that combines multiple layers of protection with collaboration across state agencies, federal policymakers, EBT processors, financial institutions, technology providers, retailers, and participant advocates. By testing approaches that identify and stop suspicious transactions without unnecessarily restricting how families use their benefits, while also sharing evidence and lessons across states and sectors, we can build a security system that better protects both beneficiaries and public resources.
Connect With Us
State and federal leaders, financial-services experts, and other partners interested in EBT theft prevention, including states interested in joining the real-time transaction blocking pilots, can contact the Aspen Institute Financial Security Program.
