SR 23-36 Dated 09/23

STATE OF NEW HAMPSHIRE

DEPARTMENT OF HEALTH & HUMAN SERVICES - Bureau of family assistance (bfa)

INTER-DEPARTMENT COMMUNICATION

SUMMARY

This Supervisory Release (SR) releases policy for providing replacement of financial and SNAP benefits lost due to electronic stolen benefits. Electronic stolen benefits are defined as card skimming, card cloning, and similar fraudulent methods. “Similar fraudulent methods” could include, but are not limited to, phishing or scamming.

This SR also releases new BFA Form 473, Attestation and Verification of Electronic Stolen Benefits.

BACKGROUND

On December 29, 2023, the President signed the Consolidated Appropriations Act of 2023, which authorized federal funds to replace electronic stolen benefits, and requires states to replace benefits stolen by electronic means for the period beginning October 1, 2022 until the date the legislation sunsets on September 30, 2024. Electronic stolen benefits are defined as: skimming, card cloning, and similar fraudulent methods. “Similar fraudulent methods” could include, but are not limited to, phishing or scamming.

·      Skimming is the use of electronic equipment to take your card information without your knowledge.

·      Card Cloning is when thieves copy stolen EBT card information to a new card.

·      Phishing scams occur when criminals use phony text messages and phone calls to obtain EBT card numbers and PINs.

·      Scamming is falsely convincing you to give your EBT and/or personal information to someone else.

POLICY

Starting September 1, 2023, replacement benefits are issued to a SNAP or financial benefit household who are victims of electronic stolen benefits if the recipient:

·      reports the electronic stolen benefits within 30 calendar days from the date the household discovered the transaction (not from the date(s) of the transaction(s));

·      provides, within 10 days of the report, either BFA Form 473 or a signed statement attesting to electronic stolen benefits, including the amount of the benefits stolen, the date, time, and location of the fraudulent transactions, and the date, time, and location that they used their EBT card; and

·      the EBT team verifies that the transactions reported meet the pattern of electronic stolen benefits.

Exception: For households who discovered they were victims of electronic stolen benefits before September 1, 2023, and whose fraudulent transactions occurred from October 1, 2022 to August 30, 2023: Replacement claims will be considered timely if reported by November 30, 2023.

Replacement benefits must be approved or denied within 10 calendar days of receiving the recipient’s signed statement or BFA form 473.

Replacement SNAP and/or financial benefits will be issued for the actual amounts stolen or the amount equal to 2 monthly allotments prior to the date the benefits were stolen, whichever is less. Households may receive replacement for up to two months of each benefit (both SNAP and financial). Monthly SNAP allotments will include Emergency Allotment (EA) or Disaster SNAP (D-SNAP) benefits if they were received in those months. The state will not replace electronic stolen benefits more than twice in one federal fiscal year for any household. Consistent with federal guidance, New Hampshire P-EBT benefits will not be replaced and are excluded from the calculation of the reimbursable amount.

Only electronic stolen benefits are eligible for replacement. Benefits are not replaced if a household lost their card or gave someone they know their card and PIN, even if it was used without their permission. All compromised EBT cards must be cancelled and replaced immediately. Only fraudulent transactions that occurred between October 1, 2022 and September 30, 2024 are eligible to receive replacement benefits for electronic benefit theft.

NEW HEIGHTS & NH EASY SYSTEMS PROCEDURES

New HEIGHTS will be updated starting September 1, 2023. New HEIGHTS has made the following changes:

·         On the Replacement Benefit screen (Eligibility/Benefit Issuance/Replacement Benefits), added ‘Skimming’ to the dropdown menu as a “reason for replacement” for both financial and SNAP benefits. Note that the “Skimming” dropdown will be used as the “reason for replacement” for all electronic stolen benefits.

·         Added denial reasons to the Replacement Benefit screen drop down menu. (Failed to Provide, Reached Annual Replacement Limit, Transaction not Reported on Time, Discovery was Over Time Limit).

·         Updated all SNAP and financial benefit NODs to include a new fixed message, “Protecting Your SNAP and Cash Benefits From Electronic Scams”.

·         Sent the attached flimsy to all SNAP and financial benefit households and their Authorized Payees on August 28 and 29, 2023.

·         New HEIGHTS will have the new Form 473, Attestation and Verification of Electronic Stolen Benefits, available as a batchable form in September 2023.

·         NH EASY will have the new Form 473, Attestation and Verification of Electronic Stolen Benefits, available in the “Forms” section in September 2023.

DESCRIPTION OF NEW FORM

BFA Form 473 and BFA Form 473(Sp), Attestation and Verification of Electronic Stolen Benefits, is a 2-page electronic form or, when printed, a 1-page double sided form that can be used by households to attest they are victims of electronic stolen benefits (skimming, card cloning, or similar fraudulent methods). The form is used to ensure proper attestation of electronic benefit theft and the value of lost SNAP and/or financial benefits.

BFA Form 473(i), Instructions for BFA Form 473, is a 2 page electronic form or, when printed, a 1-page double sided form that provides instructions for BFA Form 473, Attestation and Verification of Electronic Stolen Benefits.

BFA Form 473 and BFA Form 473(Sp) will also be available electronically on the DHHS website at http://www.dhhs.nh.gov/forms-documents-0 and NH EASY Gateway to Services at https://nheasy.nh.gov/#/forms.

BFA Form 473, Attestation and Verification of Electronic Stolen Benefits, its Spanish version, and the associated instructions will also be available internally, for Department staff only, on the N:\ drive upon release of this SR.

POLICY MANUAL REVISIONS

Revised Adult Assistance Manual Topics

PART 707                   WHAT BENEFITS MAY BE REPLACED

New Adult Assistance Manual Topics

Section 707.05            Replacing Electronic Stolen Benefits

Section 707.07            Time Frame for Replacing Electronic Stolen Benefits          

Revised Family Assistance Manual Topics

Section 709.01            What Benefits May Be Replaced

New Family Assistance Manual Topics

Section 709.07            Replacing Electronic Stolen Benefits

Section 709.09            Time Frame for Replacing Electronic Stolen Benefits          

Revised Food Stamp Manual Topics

Section 709.01            What Benefits May Be Replaced

New Food Stamp Manual Topics

Section 709.27            Replacing Electronic Stolen benefits 

Section 709.29            Time Frame for Replacing Electronic Stolen benefits           

DESCRIPTION OF REVISIONS MADE TO POLICY MANUALS

AAM 709 REPLACING FINANCIAL ASSISTANCE BENEFITS has been renamed AAM 709 WHAT BENEFITS MAY BE REPLACED

IMPLEMENTATION

Two BFA staff from each District Office will process electronic stolen benefit claims. They may be supervisors, FSS II, or a combination of those.

The BFA staff processing electronic stolen benefit replacement claims will email EBT staff when the household provides BFA form 473 (or a signed statement), and the case is ready to review. EBT staff will determine the validity of the replacement claim by reviewing the transactions reported to see if they meet the patterns of electronic benefit theft. BFA staff processing replacement claims will inform client within 10 days on the outcome of their replacement claim.

The outcome may include approval for reimbursement, a denial, or a request for more information. If more information is needed, the household will have an additional 10 days to provide. BFA staff will specify in writing what is needed to validate the claim and how to provide that information.

When taking a report of electronic stolen benefits:

·         Record the date the fraudulent charge was discovered by the household.

·         Review and record the amount(s), date(s) and the location(s) of any suspected fraudulent charge.

·         Did they give out their PIN or card number to anyone?

·         Did someone call or email them asking for this information?

·        Email a screenshot of the case comment with “skimming” and case number as the subject line to DHHS.EBTServiceReque@dhhs.nh.gov. and CC the BFA staff in your District Office who will be processing electronic stolen benefit claims.

·         Instruct the household on how to replace their EBT card and change their PIN. Verify the mailing address so a new EBT card can be issued.

Strongly  encourage households who report electronic stolen benefits to use BFA Form 473, Attestation and Verification of Electronic Stolen Benefits, in place of a signed statement.

This policy and related use of BFA Form 473 released in this SR are effective September 1, 2023.

CLIENT NOTIFICATION

On September 1, 2023, New HEIGHTS will send a one-time letter to approximately 53,737 SNAP/FANF/SSP households open on or after October 1, 2022, informing them of the procedure for replacing electronic stolen benefits. A copy of this letter is attached for reference.

All SNAP and financial benefit NODs will include a new fixed message, “Protecting Your SNAP and Cash Benefits From Electronic Scams.”

The state has set up a webpage at https://www.dhhs.nh.gov/programs-services/food-meals-assistance/supplemental-nutrition-assistance-program-snap/protect to educate clients to help protect against skimming, card cloning, and similar fraudulent methods like phishing and scamming. It will be updated with tools, tips, and tricks for households to protect their benefits, as well as an electronic stolen benefits FAQ.

Additional guidance to protect clients from electronic stolen benefits will be added to the SNAP, EBT, TANF, and Cash Assistance web pages.

DHHS remains determined to keep individuals safe from electronic benefit theft, and will continue to inform the public via social media, DHHS websites and other means.

TRAINING

The training unit will conduct a training session on August 29, 2023 over Teams for the BFA staff (two from each District Office, see above) who will be processing electronic stolen benefit replacement claims. 

FORMS MANUAL POSTING INSTRUCTIONS

DISPOSITION

This SR may be destroyed or deleted after its contents have been noted and the revised manual topics released by this SR have been posted to the Online Manuals.

DISTRIBUTION

This SR will be distributed according to the electronic distribution list for BFA policy releases. This SR, and revised Online Manuals, will be available for agency staff in the Online Manual Library, and for public access on the Internet at https://www.dhhs.nh.gov/sr_htm/sr.htm, effective October 2, 2023.

BFA:es