Romanian crime networks exploit U.S. social assistance funds

Organized crime networks, including groups led or composed of Romanian citizens, are exploiting vulnerabilities in the United States social assistance system to steal hundreds of millions of dollars. According to reports, these groups target Electronic Benefit Transfer (EBT) cards used for the federal SNAP food stamp program.

The fraud relies on outdated magnetic stripe technology, which is more vulnerable than modern chips. Criminals use sophisticated “skimmer” devices, often manufactured by specialized builders, that are installed on payment terminals in convenience stores and gas stations. These devices are designed to be nearly indistinguishable from original components, allowing them to capture card data and PINs without detection.

Stolen funds are often transferred to fraudulent cards, withdrawn, or used to purchase goods for resale. Investigators note that a portion of the illicit proceeds is converted into cryptocurrency and sent to Romania, where it is used for real estate, gambling, and funding criminal leaders. Recent legal actions have targeted groups in California, Ohio, Mississippi, Maryland, and Oregon, with over 50 individuals facing charges in connection to these activities.