Electronic Theft

Electronic theft occurs when a recipient or authorized representative (AR) has not lost physical possession of their Electronic Benefit Transfer (EBT) card and benefits are stolen from their EBT account electronically. There are two types of electronic theft, skimming and scamming.

Skimming

Skimming involves the use of electronic equipment to capture a recipient’s EBT card information without the recipient’s knowledge.

Perpetrators then create a counterfeit card and steal the recipient’s benefits.
The equipment used to capture the recipient’s card information can be installed on ATMs or third-party Point of Sale (POS) devices.

Scamming

Scamming involves deceiving or misleading a recipient to unwittingly give up their account information, such as their EBT Personal Identification Number (PIN), which is then used to create a counterfeit card and steal the client’s benefits. Scams may also involve text messaging where recipients receive a text message that appears legitimate but may; threaten to withhold benefits, indicate a problem with the recipient’s benefits, or promise recipients increased benefits.

Example Example The recipient receives a text message providing a number to call. When they call the number, they are greeted by an automated answering system that often sounds identical to the EBT customer service automated response unit (ARU). It asks the recipient to enter their account number and PIN, and then hangs up on the recipient.

Often, the recipient’s benefits are taken from their account within a couple of hours of the phone call; however, there have been times when benefits were taken well after the scam and closer to when recipients receive their monthly distribution. With the passage of time between the scam message and benefits being taken, recipients who are not aware of the scam may not associate the text message with the loss of their benefits. Telephone calls have also been reported following the same process except using a recorded voice instructing the recipient to call a number. Other telephone calls have involved a live person identifying themselves as being from EBT, requesting information, and advising the recipient their caseworker will be contacting them.

Cash Assistance Benefit Repayment due to Electronic Theft

Assembly Bill (AB) 2035 requires the prompt repayment of cash benefits lost due to skimming. There is no limit of how many times the client may receive repayment for lost cash benefits due to skimming, as long as the client is eligible and there is no fraud determined.

AB 2313 extends cash benefit repayment lost due to scamming. Cash benefits lost due to scamming may only be repaid once in a thirty-six-month period. If the county does reimburse an electronic theft due to scamming more than once in a 36-month period, the state will not reimburse the county.

All cash assistance programs that use the EBT system to issue benefits are subject to the requirements stipulated in AB 2035 and AB 2313. Those cash programs include: CalWORKs (and WTW supportive services), RCA, CAPI, and GA.

Note: Repayments are reimbursed using 100% State General Fund dollars. However, GA benefits are county-funded and are not eligible for reimbursement using State General Fund dollars.

CalFresh Benefit Replacement due to Electronic Theft

Effective October 29, 2021 with the case of Ortega v. Johnson (2020):

CalFresh recipients are entitled to replacement of their food benefits when benefits are lost due to electronic theft, provided the report is made within 10 days of the loss.
For thefts reported on or after October 29, 2021, the county accepts the reports of stolen benefits and, if determined to meet the requirements established, to promptly restore stolen benefits to the recipient’s EBT account with state-funded benefits.

Starting December 1, 2023, CalFresh benefits stolen through electronic theft, such as skimming and scamming, will be replaced with federal food benefits. This change is due to the Consolidated Act of 2023, which provided federal funding for replacing CalFresh benefits stolen from electronic theft between October 1, 2022, and September 30, 2024.

Countable Replacement Amount: Two-Month Allotment Limit

CalFresh benefits stolen electronically, whether by skimming or scamming, cannot be replaced more than two times in each Federal Fiscal Year (FFY) (i.e., October 1 -September 30). The county is responsible for verifying that a recipient’s CalFresh benefits have not been replaced (due to electronic theft) more than two times in an FFY period.

CalFresh benefit replacements must be provided to the household in the amount of the loss, up to a maximum of two months of their last monthly food allotment for each countable replacement of electronic theft. The amount replaced must equal the amount of electronically stolen benefits but cannot exceed the equivalent of two months' worth of their last monthly CalFresh allotment.

Note: Eligible stolen benefits may include electronically stolen Disaster CalFresh, benefits previously replaced due to household misfortune, and CalFresh emergency allotment benefits. In this instance, the amount replaced may exceed a two-month allotment up to the amount of the loss.

ExampleExampleIf a household reports that it lost $100 on December 1, 2023, because of skimming and their last allotment was issued on November 10, 2023, for $250 (two months of their last monthly allotment is equal to $500), the household would receive $100 in replacement benefits as it is the lesser of the two.

If the same household reports losing $600 on December 1, it will receive $500 in replacement of food benefits as the replacement amount cannot exceed two months' worth of their last monthly allotment.

Countable vs. Non-Countable Replacements

A countable replacement is a replacement of benefits due to electronic theft.

Benefits may be skimmed/scammed in a single large transaction or a series of smaller transactions over time. The term countable replacement refers to each overall skimming/scamming incident reported by a client, regardless of the number of specific transactions that were involved.

ExampleExampleIf a client reports skimming that occurred over the course of a week in a series of four fraudulent purchases, and the county approves the claim, this would constitute one countable replacement, not four. The amount of replacement benefits must only include the transactions made within 90 calendar days from the date of theft timeframe.

A non-countable replacement is a replacement of benefits due to food loss due to a household misfortune, for instance, a mass replacement due to power outages.

Denying or Delaying a Replacement

The county must deny or delay the replacement when:

Available documentation indicates that the household’s request for a replacement appears fraudulent; or
The county determines that the request for replacement does not meet the criteria for electronically stolen benefits.

If the client has already been issued the maximum allowable number of countable replacements, approval of a subsequent replacement request must be delayed until the county can verify that the replacement requested is not countable, for instance, due to a food loss due to a household misfortune.

Former CF Recipients

Recipients (i.e., clients) also include former recipients of CalFresh benefits who still have a balance of CalFresh benefits, and those benefits are subject to electronic theft. Former CalFresh recipients are entitled to the replacement of their food benefits when CalFresh benefits are lost due to electronic theft, and an EBT 2259 is submitted within 90 days of the theft. There is no time limit to how far back benefits can be replaced due to electronic theft; however, when benefits are unused for a year or more and are expunged, these benefits are not subject to replacement if stolen. Additionally, these households will only be entitled to benefit replacement of CalFresh benefits up to the amount that was stolen or equal to the household’s issuance allotment in the last two months of CalFresh participation, whichever is less.

Note: Any references to CalFresh food benefits is inclusive of state-funded California Food Assistance Program (CFAP benefits. This policy change does not apply to state-funded Supplemental Nutrition Benefits (SNB or Transitional Nutrition Benefits (TNB).

Replacement of Compromised EBT Cards

As with the current policy for replacing CalFresh benefits, when a household reports EBT theft, staff must immediately deactivate and replace the EBT card and should not wait to submit a Form EBT 2259 to deactivate the EBT card.

If the household’s compromised EBT card has already been canceled and replaced, staff are not required to replace it again unless additional thefts have occurred after the new replacement.

The policy on replacing compromised EBT cards applies to both active and inactive households. While a household must have maintained possession of their EBT card at the time of the theft for a theft to be determined (electronic) and replaceable, the household is not required to provide the compromised card to the county, and the county is not prohibited from issuing a new EBT card.

Report of Electronic Theft of Benefits (EBT 2259)

EBT 2259 Completion

The Report of Electronic Theft of Benefits (EBT 2259) must be completed timely by the client within 90 calendar days from the date of the electronic theft transaction to be eligible for a repayment or replacement. Upon receipt of a completed EBT 2259, counties have ten business days to issue repayment or replacement food benefits.

The Eligibility Woker (EW) may need to assist the client with the completion of the form. The EBT 2259 must be filled out completely, including:

Recipient Information: Name, Address, EBT Card #, Phone # and email address.
Incident Information: Checking Skimming or Scamming boxes, whichever is applicable, and ensure the EBT card questions are answered.
Subject Information: Information they may have about who stole their EBT benefits.
Transactions: A list of all of the cash aid and/or CalFresh benefit theft transactions known to them.
Additional Information: Any additional information they feel is important to the incident.
Declaration of Truth: Read and sign under penalty of perjury that the information they are providing is true and they are liable for repayment of any benefits they are not entitled to receive.
County Use Only: This section of the form must be completed by the EW including relative case information. The Approved or Denied box must be checked as applicable along with all other fields such as the EW’s and Eligibility Worker Supervisor's (EWS) contact information and signatures. Confirm the form is complete and has all of the necessary information PRIOR to submitting via email to EBT2259@DSS.CA.Gov.

Important: The Refer For Investigation box can remain unmarked when the case is not referred for investigation.

Police Reports

A police report is recommended, but not required for stolen cash aid and/or CalFresh benefits. If a police report was filed, the client is not required to attach a copy of the police report. The filing of the crime/incident report may be done in any manner as follows:

Online at: sjpd.org/ReportingCrime/OnlineReport
In person at:
- San Jose Police Department
  201 W. Mission Street
  San Jose, CA 95110
By telephone call to: San Jose Police Department at (408) 277-8900 between 11:30 am and 3:30 pm.

EBT Scamming Acknowledgment (EBT 2259A) for Cash Benefits

Because reimbursement for electronic theft scams may only occur once in a 36-month period for cash benefits, the client or person reporting the incident must read, initial, and sign the EBT Scamming Acknowledgement (EBT 2259A) form for cash benefits. The purpose of the EBT 2259A is to educate EBT recipients on protecting PII and reaffirm that recipients are responsible for protecting their PII.

The EBT 2259A must be reviewed with each cardholder ensuring clients sign the form indicating they understand that scamming claims can only be reimbursed one time in a 36-month period for cash benefits. The form also states that the client understands that any delay in the submission of the EBT 2259A form may cause a delay in the processing of the benefit replacement.

Note: EBT 2259A is no longer required for CalFresh, effective December 1, 2023.

Process and Reporting Timeframes

Client Reporting Timeframe

The client should report the theft as soon as it occurs.

For theft of CalFresh food benefits, the report must occur within 90 days of the electronic theft.
For theft of cash aid benefits, the report must occur within 90 days of the electronic theft.

The client must contact their eligibility worker to complete an EBT 2259 within 90 calendar days from the date of the electronic theft transaction (the loss) in order to be eligible for a repayment and/or replacement. The EBT 2259 must be filled out entirely, including the recipient’s signature and the date the form was completed.

California EBT Customer Service Helpline

If the client contacts the California EBT Customer Service Helpline, a claim is not filed by the Customer Service Representative (CSR), but the CSR would:

Explain the reporting process,
Deactivate the client’s EBT card and issue a new one, and
Direct the client to report the electronic theft to their county for additional information and submission of the EBT 2259.

Eligibility Worker (EW) Process & Time Frame

When the client contacts their Eligibility Worker (EW), the EW must:

Follow district office procedures by completing the EBT On-Line Request (SCD 2201), to deactivate the client’s EBT card and issue a new one. Refer to EBT Forms.
Explain the electronic theft reporting process to the client.
Provide the EBT 2259 form for the client to complete and assist them in completing the form if requested by the client.
Read through the EBT Scamming Acknowledgment (EBT 2259A) for scammed recipients informing them to never give out their EBT card number and PIN to anyone; and that state, county, and federal government will never ask for their PIN.
- Inform recipients that scamming claims will be reimbursed only once in a 36-month period for cash aid, and not more than twice in an FFY (10/1 to 9/30) period for CalFresh food benefits.

Upon receipt of a completed EBT 2259, the EW has 10 business days to issue repayment and/or replacement benefits. The EW must:

Review the EBT 2259 to ensure the client has provided complete information and submitted the form within 90 calendar days from the date of the electronic theft transaction.
Ask questions regarding the stolen benefits to complete the EBT 2259.
Review the case file to determine if the client has had any other EBT 2259 filings within the last year for potential limitations on benefit repayments/replacements and take appropriate action which may include:
- Send the EBT Replacement Review (WI 10072B) NOA as appropriate if a referral to the Special Investigative Unit (SIU) was made and the claim is pending SIU review.
- Submit the completed EBT 2259 to the supervisor for approval or denial of repayment and/or replacement benefits.
- Process the approval or denial of benefits (workflows may vary by office).
- Send EBT Replacement Approval (WI 10072A) or EBT Replacement Denial (M44-350K) NOA.
Image and email the completed EBT 2259 and EBT 2259A (if applicable) to the State EBT office at EBT2259@DSS.CA.Gov.

Reminder: EWs must generate all necessary NOAs for the different combinations of skimmed, scammed, cash, and food scenarios.

Documentation of Electronic Theft

Detailed information on all benefit repayments and/or replacement approval/denials must be documented on the Journal Detail page and on the EBT 2259 form. Documentation must include the date, the reason, and the disposition of the request.

Documentation must also include each request for replacement, a full record of all replacements granted, and information necessary to differentiate between electronically stolen benefit replacements, which are countable, from replacement benefits that are not subject to the replacement limit, for example, benefits lost as a result of a household misfortune.

Tracking in CalSAWS

Effective April 1, 2024, when a client reports an EBT electronic theft by answering a series of questions in their BenefitsCal account, a PDF of EBT 2259/EBT 2259A is generated and imaged. The EBT theft information is auto-populated in the EBT Theft Detail page. EWs will receive a task to process the benefits replacement request and update the EBT Theft Detail page accordingly.

When a client submits a complete EBT 2259/EBT 2259A using other methods (such as in-person, mail-in, or document upload), EWs must record the details in the EBT Theft Detail page.

Refer to Chewable Bytes 2024-97: How to Enter EBT Theft Detail Page for CalSAWS entries. EWs must complete mandatory fields and all specified non-mandatory fields as instructed in this Chewable Bytes. This information is necessary for tracking purposes in CalSAWS.

Note: Tasks are not generated for EWs to issue replacement benefits. EWs must follow Chewable Bytes 2023-21: How to Replace Skimmed or Scammed Cash and CalFresh Benefits.

Typical Scamming Practices

Upon receipt of the EBT 2259, EWs must review it to ensure recipients have answered all of the questions completely. If the form alleges a scam, the EW will determine if the information provided is consistent with typical scamming practices. Typical scamming practices include, but are not limited to:

Recipients live in one city and benefits are stolen in another city.
There may be numerous calls to the EBT customer service ARU.
Scammed cash benefits are stolen in large cash withdrawals or two or three separate large cash withdrawals.
All of the cash and/or food benefits are stolen.
ATM benefits are usually stolen between the hours of midnight to six a.m.
There may be a PIN change before the benefits are stolen.

If the claim is not consistent with typical scamming practices, the claim should be reviewed further to determine if a referral to SIU is warranted.