In 2025, Georgia authorities dismantled a long-running Supplemental Nutrition Assistance Program (SNAP) trafficking ring that funneled millions of dollars in fraudulent transactions through convenience stores and small grocers. The scheme not only stole taxpayer funds but also weakened trust in a program designed to reduce food insecurity.
Fraudulent retailers allowed SNAP recipients to “sell” their benefits for cash at a steep discount—typically 50 to 60 cents on the dollar. Store owners then pocketed the full reimbursement by submitting false claims for groceries never purchased. Investigators uncovered evidence of coordinated trafficking across multiple counties, with some stores processing hundreds of thousands of dollars in phony transactions in a matter of months.
“This was an attack on both the taxpayers and the integrity of the SNAP program,” said Georgia Department of Human Services Commissioner Candice Broce. “Trafficking not only drains resources, it deprives families of the food security the program is meant to provide.”
The fraud’s consequences stretched beyond finances. Many recipients who sold benefits for short-term cash were left without food later in the month, undermining the very purpose of the program. Honest retailers also faced unfair competition from stores profiting illegally.
In response, Georgia has expanded undercover investigations, increased penalties for trafficking convictions, and implemented new analytics to identify suspicious transaction patterns. Federal partners are also pressing for lifetime bans from the program for stores found guilty of trafficking.
The case highlights the persistent vulnerabilities in benefits programs and the need for strong oversight to protect both public trust and family well-being.
Today’s Fraud of the Day is based on reporting from the Atlanta Journal-Constitution and the Georgia Department of Human Services regarding SNAP trafficking prosecutions in 2025.
