Americans expect and deserve a government that ensures their hard-earned tax dollars are managed wisely. Without that type of commitment, we risk undermining public confidence in the value of federal programs and threaten their very survival.
I want to assure all Americans that we take this charge seriously with regard to these programs, including the Supplemental Nutrition Assistance Program, or food stamps as it is still called in some states. Put simply, we do not tolerate fraud in this vital program.
In that same spirit, the U.S. Department of Agriculture recently announced the first-quarter results of our anti-fraud efforts in 2012. From Oct. 1 through Dec. 31, we took conclusive actions to sanction — via fines or temporary disqualifications — more than 225 stores found violating program rules, and we permanently disqualified over more than stores for trafficking SNAP benefits.
While fraud is a relatively limited problem in SNAP — the violating stores represent less than one-half of 1 percent of more than 230,000 food stores authorized to redeem benefits — no level of fraud is tolerated. The USDA's Food and Nutrition Service conducts ongoing surveillance and investigation, to find bad actors and remove them from the program. In fiscal year 2011, FNS reviewed more than 15,000 stores, and permanently disqualified more than 1,200 for program violations.
As regional administrator for the USDA Food and Nutrition Service Mountain Plains Regional Office, I know firsthand the importance of SNAP. Our Denver office oversees the operation of 15 nutrition assistance programs, including SNAP, in 10 states. More than half of those receiving benefits are children, elderly people and disabled people. But there are also millions of hard-working people turning to SNAP for the first time in their lives.
In 14 years of administering this program at the federal level, I have found that Americans support helping low-income families and children meet their basic nutrition needs — but they want to know that benefits will be used appropriately. I share that sentiment, and we are constantly working to improve our systems and meet evolving fraud risks.
Recent stories on SNAP fraud indicate that our anti-fraud efforts are working and that bad actors are being caught and prosecuted. In FY 2010, more than 780,000 investigations were completed, and 44,000 individuals were disqualified from the program, including 535 in Missouri. Nationwide, states collected more than $67 million in fraud claims as a result of these disqualifications.
Our efforts to combat SNAP trafficking — the sale or purchase of benefits for cash — have been particularly successful. Trafficking is an illegal activity punishable by criminal prosecution, and, over the last 15 years, USDA's Food and Nutrition Service and state agencies administering the program have reduced sharply the prevalence of SNAP trafficking, from 4 percent down to its current level of 1 percent.
USDA is increasing documentation requirements to verify identity and assure business integrity as well as researching high-risk stores using tax and business databases. Stores that falsify information will be charged and disqualified and may be liable for a $10,000 fine or imprisonment for as long as five years or both.
Other more recent illegal activities we became aware of include selling benefits online through social media outlets like Craigslist or Facebook. We recently changed our policies to make clear that advertising the sale of benefits through these sites is a violation and can result in disqualification from SNAP. We also are in the process of developing stronger sanctions and penalties through regulatory process against the small proportion of retailers that misuse the program.
This month, FNS launched a new website to get the word out about our anti-fraud efforts in order to deter bad actors and enlist the public in helping to fight SNAP fraud www.fns.usda.gov/fightingsnapfraud. We will continue to use all the tools available, including the latest technology, to combat fraud and trafficking.
Taken together, these steps underscore USDA's commitment to protect the integrity of these programs. I am hopeful that they will help to reassure Americans that these programs merit their confidence. And I'm proud to say that USDA takes protecting taxpayer dollars very seriously, and we are working hard to make sure others do too.
Darlene L. Barnes is a regional administrator for the U.S. Department of Agriculture Food and Nutrition Service.


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