Gov. Hochul to propose law that will let New Yorkers recoup stolen public assistance benefits

ALBANY — Gov. Hochul is ready to help vulnerable New Yorkers recover funds if they’re been victimized by fraudsters targeting public benefits.

A section of Hochul’s budget proposal due Wednesday would let the state reimburse public assistance recipients whose benefits are stolen by card skimming, cloning, or other fraudulent acts.

The proposal comes after advocates and the Daily News highlighted the fact that there is currently no recourse for New Yorkers in need whose benefits are stolen by tech-savvy thieves.

“New Yorkers who depend on public assistance to make ends meet each month face a true crisis when their benefits are abruptly stolen by thieves using skimming devices,” Hochul said in a statement.

“No New Yorker deserves to be left in the lurch after falling victim to these scammers, so I’m proposing legislation to establish a fund that will help those struggling households recoup some of their lost benefits.”

Thousands of low-income New Yorkers were victims of benefit theft by card-skimming schemes last year, according to data the Empire Justice Center and the Legal Aid Society obtained from the Office of Temporary and Disability Assistance.

More than $730,000 was stolen from New Yorkers using Electronic Benefit Transfer, or EBT, cards, last year through August, according to data provided to Legal Aid.

While the federal Department of Agriculture provided guidance and funding for states to help replace stolen Supplemental Nutrition Assistance Program, or SNAP, benefits last year, state laws need to be overhauled to allow for reimbursements directly to New Yorkers.

Hochul’s bill would amend the state’s Social Services Law to require local social services districts to replace stolen public assistance benefits no later than five business days after the district verifies that benefits were stolen and properly reported, in accordance with guidance to be established by the OTDA.

Eligible recipients would receive the lesser of either the amount stolen or the amount of benefits provided during the two months prior to the theft.

If approved, the measure would allow victims to seek reimbursement no more than twice during a federal fiscal year. That would drop to once a year starting in October 2024.

EBT cards are similar to prepaid debit cards, allowing qualified New Yorkers to buy groceries and other needed items at participating stores. They are particularly vulnerable to “skimming,” a growing scam in which devices are added to card reading machines that allow information to be stolen.

Benefit cards in New York, unlike some other states, don’t have chips, a security measure required by the state for debit and credit cards since 2015.

More than half of households that receive public assistance in New York are families with children and about 48% include an adult over the age of 55 or a person with a disability, according to a report from last year.

About 1.7 million New York City residents — or 20% of the population — rely on food stamps.

Hochul’s budget proposal is the first step in a nearly two-month-long process that will see the governor’s office and the Legislature negotiate a state spending plan ahead of the April 1 fiscal deadline.