New York to Issue New Chip-Enabled EBT Cards to Combat SNAP Benefit Theft

New York State will begin issuing new EBT cards equipped with chip technology in early 2027 to enhance the security of Supplemental Nutrition Assistance Program (SNAP) beneficiaries and combat benefit theft through card cloning. The state's Office of Temporary and Disability Assistance (OTDA) has contracted with Fidelity Information Services, LLC (FIS) to produce these cards, which will utilize the same chip technology found in bank cards. This upgrade aligns with the federal Electronic Benefits Transfer (EBT) system's compatibility with chip cards, with an estimated two million cards to be issued. All current SNAP and Public Assistance program recipients will receive a new chip-enabled card as the rollout progresses. Governor Kathy Hochul stated that modernizing the EBT system is crucial for preventing criminals from exploiting vulnerable residents, especially as federal efforts to address food insecurity face challenges. New York joins a growing number of states adopting more secure EBT card technology, with resources for this transition approved in the Fiscal Year 2027 budget. The OTDA is coordinating with retailers and financial institutions to update payment terminals and will provide beneficiaries with advance notice and instructions for card replacement and activation. The shift is a response to a significant increase in benefit theft via card cloning devices, where criminals copy magnetic stripe information and PINs to drain funds before beneficiaries can access them. This issue has become more critical since the federal government stopped funding the replacement of stolen benefits at the end of 2024. In the interim, users can enhance security by using the lock/unlock feature on the ebtEDGE app or cardholder portal, and by blocking online or out-of-state purchases. The OTDA also warned beneficiaries to be wary of any communications requesting card numbers or PINs, as these are likely scams. Officials, including OTDA Commissioner Barbara C. Guinn and Senator Roxanne J. Persaud, have highlighted the importance of these measures in protecting vulnerable populations who rely on SNAP benefits for essential needs amidst rising living costs.