The US electronic benefit transfer or EBT system is attractive to fraudsters due to lack of adoption and investment in new technologies.
As well as consumer to business fraud, the US government is also grappling with business to business fraud, where a business uses collated fraudulent transactions to restock its store. This activity has a direct impact on every member of the population, even those who are not in receipt of benefits. Every dollar of public money spent combatting fraud is a dollar less spent on essential services such as education, transportation or healthcare.
Unless the US government tackles fraud through the implementation of new technology with appropriate levels of security, fraud will continue to spiral. The US could learn a lot from emerging economies such as India, which is investing heavily in technology infrastructure, enabling it to educate its population on various levels of security and update payment methods.
To find out more about EBT fraud and its prevention in the future, read our white paper here.