WASHINGTON, D.C. (Michigan News Source) – The Foundation for Government Accountability just released a report that says $2 billion a year is lost in food stamp trafficking fraud nationwide.
Trafficking is defined as exchanging cash for food stamp benefits at a discount.
In 2013, authorities in Michigan disrupted a ring of food stamp trafficking that total millions of dollars in transactions in a single year. It involved “runners” who got Bridge cards and sold the benefits at a discount to various Detroit businesses.
In Michigan, Bridge cards must not be used to purchase lottery tickets, alcohol, or tobacco, or for gambling, or illegal activities. There are designated fast food restaurants around Michigan that take Bridge cards.
The state does investigate food stamp fraud. The Michigan Department of Health and Human Services’ Office of Inspector General reported that it saved $305.9 million in fraudulent spending via fraud detection, cost avoidance and disqualifications in 2024.
