Small Business Fraud

Small Business Fraud Articles and Information

Small Business Food Stamp Fraud

Another scam targeting small business owners is Food Stamp Fraud. Food stamp benefit dollars are being stolen from store accounts.

Someone may call your store pretending to be an EBT vendor or a Food Stamp official. He or she will say s/he must test your EBT machine immediately or it will stop working. The caller will instruct you to enter a series of numbers followed by a dollar amount. These are valid EBT card and PIN numbers. The transactions you are completing are key-entered refunds. Money is moved from your store’s account to the EBT cardholder account. This is NOT a test. Money has been and is being stolen from stores like yours. The refunded food stamp benefits are then quickly spent or trafficked in other locations.