LANSING, Mich. (Michigan News Source) – Michigan’s food assistance program has become an all-you-can-steal buffet for scammers. Fraudulent payouts through the state’s SNAP program surged by 387% between fiscal years 2023 and 2024, with $884,947 in replacement benefits issued – up from just $181,778 the year before. A report using data obtained by Michigan Capitol Confidential via public records request, exposes an alarming vulnerability in a program meant to feed families, not fund fraud rings.
Food “stamps” haven’t been stamps in decades.
Despite still being called “food stamps” by most media outlets, the benefits haven’t been stamps since the early 2000s. The program began in 1939 using literal paper stamps, made permanent by President Lyndon B. Johnson’s “War on Poverty” in 1964 to help the unemployed. But by the 1990s, the U.S. transitioned to Electronic Benefit Transfer (EBT) cards – supposedly to curb fraud. Michigan’s version of the EBT card is called the “Bridge Card” – a plastic swipe card with magnetic strip technology straight out of Blockbuster Video.
Old tech, new tricks: the Bridge Card problem.
And therein lies the issue. While the federal government urged states in late 2024 to upgrade to chip- enabled cards, Michigan has stuck with its outdated magnetic-strip system. That decision has cost Michiganders over $846,000 in stolen benefits so far in fiscal year 2025. The magnetic strips are easy prey for criminals who skim, clone, and drain accounts before families even realize their benefits are gone – usually at the worst possible moment: the grocery checkout line.
$16 million fix ignored, families pay the price.
Upgrading to chip cards would cost Michigan an estimated $16.3 million upfront, with $2.7 million in yearly maintenance. The federal government even offered to cover half the transition costs. So why hasn’t Michigan made the change? The state health department didn’t respond to Michigan Capitol Confidential’s request for comment.
The proposed upgrade would include issuing new cards, updating tech infrastructure, customer notifications, and enhanced support services. Inaction, however, is proving far more expensive – for both taxpayers and vulnerable families.
Criminals feast while families starve.
Fraud comes in many methods, according to the Cato Institute. Tactics include card skimming, phishing, selling benefits, falsifying applications, and even government employee theft. These aren’t just shadowy keyboard hackers – some scammers work within the very system designed to help the needy.
Millions on SNAP, and growing.
As of June 2023, approximately 1.4 million Michiganders relied on SNAP. That number continues to climb – and so does the potential for fraud if security measures remain frozen in the past.
With criminals cashing in and families left empty-handed, Michigan’s reluctance to modernize its food assistance system isn’t just negligent – it’s costly, cruel, and unsustainable.
