The intentional misuse of the Supplemental Nutrition Assistance Program (SNAP) benefits by recipients, retailers, or external scammers is known as SNAP fraud. This illegal activity diverts funds from those in genuine need and can lead to severe penalties, including disqualification from the program, substantial fines, and imprisonment.
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In Fiscal Year 2023, the USDA estimated 11.7% of benefits ($10.5 billion) were improper, with some estimates reaching up to $12 billion in stolen funds in 2025.