LexisNexis Risk Solutions Study Finds SNAP Fraud Costs Have Reached a Five-Year High

Rhea-AI Summary

LexisNexis Risk Solutions (RELX) released its fifth annual True Cost of Fraud Study for SNAP agencies, finding that state and county Supplemental Nutrition Assistance Program agencies now incur an average of $4.29 in total costs for every $1 in benefits lost to fraud, the highest level in the study’s five-year history.

Based on a survey of 150 SNAP and integrated eligibility system decision-makers, the research links higher payment accuracy to lower fraud-related costs and highlights mounting challenges from complex eligibility rules, information gaps, document manipulation, cross‑program fraud exposure and increasingly sophisticated, including AI‑enabled, schemes. Agencies with stronger access to trusted identity, income and eligibility data were markedly better at preventing fraud before benefits are issued.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Agencies now incur an average of $4.29 in total costs for every $1 lost to fraud as payment accuracy, data quality and eligibility challenges continue to mount.

WASHINGTON, Sept. 22, 2026 /PRNewswire/ -- LexisNexis® Risk Solutions today released its fifth annual True Cost of Fraud™ Study for SNAP Agencies and Integrated Eligibility Systems (IES), finding that state and county Supplemental Nutrition Assistance Program (SNAP) agencies now incur an average of $4.29 in total costs for every $1 in benefits lost to fraud.  This average cost is the highest level reported in the study's five-year history. The research comes as agencies face growing pressure to improve payment accuracy, protect taxpayer resources, and deliver timely benefits while implementing new federal requirements and managing increasingly complex eligibility decisions.

A nationwide survey of 150 state and county SNAP agency decision-makers found that agencies are navigating an increasingly challenging operating environment shaped by payment accuracy requirements, evolving eligibility policies, administrative resource constraints, increasingly sophisticated fraud schemes and growing expectations for faster benefit delivery.

The survey findings point to a broader challenge. Agencies are not only confronting fraud, but also balancing increasingly complex eligibility requirements, payment accuracy expectations, administrative demands, and program integrity responsibilities. States are preparing for policy changes associated with H.R. 1 that affect SNAP eligibility requirements and program administration while also working to improve payment accuracy, manage administrative resources, and ensure eligible families receive benefits on time.

Key Findings

• SNAP fraud costs reached a five-year high. Agencies now incur an average of $4.29 in total costs for every $1 lost to fraud, reflecting the growing operational and financial burden of fraud on public benefit programs.
• Higher payment error rates carry higher costs. Agencies reporting stronger payment accuracy also reported lower fraud-related costs, highlighting the close connection between improper payments, administrative burden and program integrity.
• Eligibility information gaps are adding pressure to agency operations. Agencies continue to face challenges accessing the information needed to verify eligibility, support program integrity and make timely benefit decisions.
• Document-related threats are increasing complexity. Agencies reported growing challenges involving document authentication and manipulated documents, demonstrating the impact of increasingly sophisticated digital and AI-enabled fraud schemes.
• Cross-program fraud exposure continues to rise. As integrated eligibility systems expand, agencies are encountering increased fraud risk across multiple benefit programs and eligibility environments.
• Better data supports earlier fraud prevention. Agencies with stronger access to trusted data and fewer information gaps were significantly more successful at identifying and preventing fraud before benefits were issued.

"The real cost of fraud today extends far beyond stolen benefits," said Haywood Talcove, Chief Executive Officer, Government, LexisNexis Risk Solutions. "Agencies are being asked to make faster, more accurate decisions, while managing increasingly sophisticated fraud schemes, rising payment integrity expectations and growing operational demands. Our study shows that success depends on more than technology alone. Agencies achieve stronger outcomes when modernization is paired with trusted identity, income and eligibility intelligence that helps caseworkers make informed decisions, reduce improper payments and protect critical benefits."  

As policymakers and agency leaders navigate evolving federal requirements, the research reinforces that payment accuracy, administrative efficiency, program integrity and timely benefit delivery are interconnected. Strengthening access to authoritative identity, income and eligibility information can help agencies make better decisions earlier, reduce administrative burden, protect taxpayer resources and preserve access for eligible families.

About the Study

The fifth annual LexisNexis Risk Solutions True Cost of Fraud™ Study for SNAP Agencies and Integrated Eligibility Systems surveyed 150 senior state and county SNAP agency decision-makers and administrators in June 2026. The study examined fraud trends, payment error rates, integrated eligibility systems, modernization, data challenges, program integrity and expected impacts of policy changes associated with H.R. 1. LexisNexis Risk Solutions was not identified as the sponsor of the research.

About LexisNexis Risk Solutions

LexisNexis® Risk Solutions harnesses the power of data and advanced analytics to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. We provide data and technology solutions for a wide range of industries including insurance, financial services, healthcare, and government. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information and analytics for professional and business customers. For more information, please visit www.risk.lexisnexis.com and www.relx.com.

Media Contact:
Paul Eckloff
LexisNexis Risk Solutions
Mobile: +1.202.941.6986
Paul.Eckloff@lnssi.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/lexisnexis-risk-solutions-study-finds-snap-fraud-costs-have-reached-a-five-year-high-302884856.html

SOURCE LexisNexis Risk Solutions

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What operational pressures are SNAP agencies facing alongside rising fraud costs?

SNAP agencies report an increasingly challenging environment shaped by stricter payment accuracy requirements, evolving eligibility policies, administrative resource constraints, more sophisticated fraud schemes and expectations for faster benefit delivery. They must balance program integrity responsibilities with ensuring eligible families receive benefits on time.

Beyond fraud cost levels, what key risk trends did the study identify?

The study identifies several trends: persistent eligibility information gaps that hinder timely and accurate decisions; increasing document-related threats such as authentication challenges and manipulated documents linked to digital and AI-enabled fraud; and rising cross-program fraud exposure as integrated eligibility systems span multiple public benefit programs.

How does better data access affect fraud prevention outcomes for SNAP agencies?

Agencies with stronger access to trusted identity, income and eligibility information, and fewer information gaps, were significantly more successful at identifying and preventing fraud before benefits were issued, which the company says can also reduce administrative burden and support payment accuracy and program integrity.