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Actions Needed to Better Measure and Address Retailer Trafficking

Pursuit's Take

Despite efforts by the USDA to crack down on it, retailer trafficking – the practice of selling SNAP benefits (food stamps) for cash – continues at a rate of at least $1 billion per year. The practice occurs when stores sell the SNAP benefit holders cash instead of food. An example of a transaction would swiping $100 in SNAP benefits in exchange for $50 in cash. The customer gets the cash and the store owner gets an extra $50 in profit. GAO found that the rate at which this fraud takes place could be underestimated and that up $4.7 billion in retail trafficking takes place annually.

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