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Tuesday, October 16, 2012

REPORT: ILLEGAL UNDERGROUND FOOD STAMP MARKET THRIVES ONLINE

Understaffed food stamp fraud prevention units and lax anti-fraud security on Electronic Benefit Transfer (EBT) cards have created a thriving underground market where food stamp recipients illegally sell and trade their taxpayer-funded benefits, often using online websites like Backpage.com, Craigslist, or social media. 

That is one of the findings of a new report by the Government Accountability Institute (GAI) examining how the poverty industry has become a massive profit center for politically-connected corporations like JP Morgan, who have made at least $560,492,596since 2004 to process the EBT cards of food stamp recipients in 24 states and two U.S. territories. 

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