LexisNexis® Risk Solutions Study Reveals SNAP Fraud Costs Surge to $4.14 Per $1 Lost as Digital and EBT Schemes Escalate

Rhea-AI Summary

LexisNexis Risk Solutions (NYSE:RELX) has released its fourth annual True Cost of Fraud Study for SNAP agencies, revealing alarming trends in benefit fraud. The study shows that for every $1 lost to fraud, agencies now incur $4.14 in total costs, up from $3.93 in 2024. The average monthly rate of fraudulent SNAP applications has doubled since last year.

Digital channels now account for nearly half of all fraud costs, with criminals exploiting online applications and EBT systems through identity theft, account takeovers, and card skimming. Multi-program integration systems face even higher costs of up to $4.55 per $1 lost when five or more programs are integrated. However, agencies utilizing integrated systems with cross-shared data and proper identity verification report lower fraud costs of $3.98 per $1 lost.

Positive

• Agencies with fully integrated systems and cross-shared data report lower fraud costs ($3.98 per $1 lost)
• Study provides comprehensive data to help agencies combat fraud through modernization and robust data sharing

Negative

• SNAP fraud costs increased to $4.14 per $1 lost, up from $3.93 last year
• Fraudulent SNAP applications have doubled since 2024
• Digital channels now account for nearly half of all fraud costs
• Multi-program systems face higher fraud costs up to $4.55 per $1 lost
• 74% of agencies report increased errors due to staffing shortages and outdated systems

Insights

Government Security Analyst

LexisNexis report reveals SNAP fraud costs soaring to $4.14 per $1 lost, highlighting growing market need for their risk solutions.

The latest LexisNexis Risk Solutions study on SNAP fraud reveals alarming trends that paradoxically strengthen the company's market position. With fraud rates doubling since 2024 and costs rising to $4.14 per $1 lost (up from $3.93 last year), the report effectively demonstrates increasing demand for RELX's fraud prevention services.

The study strategically identifies digital transformation as both problem and solution. Digital channels now account for 50% of fraud costs, with criminals exploiting multiple entry points across integrated eligibility systems. Notably, fraud costs rise to $4.18 per dollar in multi-program systems and as high as $4.55 where five or more programs integrate – precisely the complex environments where LexisNexis solutions provide maximum value.

The timing of this report is particularly significant given the administrative changes introduced by House Resolution 1, which likely creates implementation challenges for agencies and opportunities for LexisNexis to position its solutions. By highlighting how agencies using integrated systems and cross-shared data experience lower fraud costs ($3.98 per dollar), LexisNexis effectively markets its data-sharing and identity verification technologies.

Beyond financial metrics, the report emphasizes operational challenges like staff turnover, delays, and errors that compound fraud vulnerabilities – all problems the company positions itself to solve. The study's conclusion linking fraud prevention to improved benefit access for deserving recipients creates a compelling value proposition that aligns business interests with social welfare, potentially expanding LexisNexis's footprint in government services.

Volume of fraudulent cases has doubled since 2024 - Expanded digital access and multi-program eligibility systems are fueling identity theft, EBT account takeovers, and delays

ATLANTA, Sept. 23, 2025 /PRNewswire/ -- LexisNexis® Risk Solutions today released its fourth annual True Cost of Fraud™ Study for Supplemental Nutrition Assistance Program (SNAP) agencies and Integrated Eligibility Systems (IES). The report reveals that the cost and volume of SNAP fraud have risen sharply over the past year, driven by the accelerated shift to digital channels, increasingly sophisticated Electronic Benefits Transfer (EBT) theft schemes, and complex multi-program eligibility systems. The findings of this year's report are especially significant given the administrative and programmatic changes introduced to SNAP agencies across the country by House Resolution 1 (H.R. 1). 

According to the 2025 study, the average monthly rate of fraudulent SNAP applications and post-issuance cases has doubled since 2024. For every $1 in SNAP benefits lost to fraud, agencies now incur $4.14 in total costs, up from $3.93 a year ago.

"SNAP is a lifeline for millions of families, and these findings highlight how increasingly sophisticated criminals are targeting this critical benefit program," said Amanda D' Amico, Senior Director at LexisNexis Risk Solutions. "Digital channels and expanded eligibility systems improve access but also expand the attack surface. Agencies that leverage real-time data, identity verification, and digital authentication solutions to detect fraud and increase cross-program collaboration can turn the tide against fraud while ensuring timely benefits for those in need."

Key Findings

• Digital Channels Driving Fraud Growth: Agencies reporting high volumes of online and mobile applications saw disproportionately higher fraud losses, with digital channels now accounting for nearly half of all fraud costs. Scammers are increasingly using stolen identities and unauthorized point-of-sale terminals to conduct EBT account takeovers, card skimming, and cloning.
• Fraud Risks Rise with Broader IES Integration: The spread of IES across Human Services programs (SNAP, Medicaid, Special Supplemental Nutrition Program for Women, Infants, and Children (WIC), Temporary Assistance for Needy Families (TANF), Low Income Home Energy Assistance Program (LIHEAP)) is creating more access points for fraudsters. Fraud costs rise to $4.18 per $1 lost in multi-program systems and as high as $4.55 where five or more programs are integrated.
• Integration + Quality Data Can Reduce Fraud: Agencies that fully integrate systems, cross-share data, cross-train staff, and reassess identity on non-SNAP originating applications report lower fraud costs—$3.98 per $1 lost—and fewer errors.
• Delays, Errors, and Turnover Undermine Integrity: Agencies overwhelmed by application volume, staffing shortages, outdated systems, and poor data quality are falling short of federal timeliness requirements. Nearly half report lower productivity and 74% report increased errors, eroding confidence in eligibility decisions.
• Human Impact is Mounting: Delayed approvals can cause hunger, malnutrition, and financial stress for households in need, while compounding low morale and high turnover among staff.

"This year's findings paint a sobering picture of the escalating threats SNAP agencies face," said Haywood Talcove, CEO of LexisNexis Risk Solutions Government. "Fraudsters are exploiting digital channels and artificial intelligence, stealing identities, and leveraging sophisticated schemes to divert critical benefits. Without modernization, robust data sharing, and strong identity verification, fraud will continue to drain resources from the people who need them most. The good news is that agencies investing in advanced fraud detection are proving it's possible to protect integrity while simultaneously improving access to benefits."

About the 2025 Study
The True Cost of Fraud™ Study for SNAP Agencies and Integrated Eligibility Systems surveyed 150 senior decision-makers across state and county agencies nationwide in June–July 2025. The study evaluates the cost, volume, and types of SNAP fraud, the operational resources agencies devote to prevention, and the impact of modernization and data quality on application timeliness, payment accuracy, and caseworker experience.

Download a copy of the True Cost of Fraud™ Study for Supplemental Nutrition Assistance Program (SNAP) and Integrated Eligibility Systems (IES). 

Register here for an informative webinar on the study on October 14, 2025.

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

 

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SOURCE LexisNexis Risk Solutions

FAQ

How much has SNAP fraud increased in 2025 according to LexisNexis Risk Solutions (RELX)?

According to the study, the average monthly rate of fraudulent SNAP applications has doubled since 2024, with agencies now incurring $4.14 in total costs for every $1 lost to fraud.

What are the main drivers of SNAP benefit fraud in 2025?

The main drivers are digital channels, including online and mobile applications, along with sophisticated schemes like EBT account takeovers, card skimming, and identity theft. Multi-program integration systems are also creating more access points for fraudsters.

How does multi-program integration affect SNAP fraud costs?

Multi-program integration increases fraud costs to $4.18 per $1 lost, rising to as high as $4.55 when five or more programs are integrated.

What solutions does LexisNexis Risk Solutions recommend to combat SNAP fraud?

LexisNexis recommends implementing real-time data analysis, identity verification, and digital authentication solutions, along with increased cross-program collaboration and system modernization.

How are staffing issues affecting SNAP benefit administration?

Agencies are experiencing lower productivity and increased errors (74% reported) due to staffing shortages, overwhelming application volumes, and outdated systems, leading to delays in benefit approvals.