With this terms Presidential Election closed most people are now focused on the hot topics affecting the country. For a majority of Americans this topic is the deficit. Everyone has an idea of who should get less money and who is spending frivolously, but there is no concrete plan to save money and decrease debt. One area that could use a little face lift is the welfare system. This past fiscal year it was reported that the government spent $75 billion dollars on the food stamp program and over $700 million was lost in fraudulent activity (Pianin 2012). Fraud, waste, and abuse are rampant in the food stamp program; therefore, the US government should overhaul the current system utilizing a more efficient biometric pin in chip card system.
Tackling problems in the welfare system can be daunting without a clear vision. There are many theories about what changes would be more beneficial. It is evident that fraud in the system causes a great loss. To understand just how the food stamp program can be improved, an understanding of the program must be established. Currently the United States Department of Agriculture (USDA) no longer issues out paper “food stamps” but has moved on to a program called Supplemental Nutrition Assistance Program or SNAP (USDA 2012). When a U.S. citizen is enrolled into the SNAP program the local welfare office issues out an Electronic Benefits Transfer card or EBT card. These cards are used as pin activated debit cards which are loaded up monthly with a fixed amount of funds. The benefits holder can then go to a local vendor that accepts the EBT card and they are able to purchase food items that are on a government approved list.
When taking a glimpse of this system, it looks fairly simple and forthright but the fact is there are people that use this simplicity to dupe the system. For starters, the EBT card does not have the receivers name or any identifying markers. Virtually anyone with access to the pin number can utilize the card. Secondly, there is no technology in place to see who purchased on the card, where they purchased food, or electronic records of their entitlements (USDA 2012).
The United States Military currently uses Common Access Card system or CAC system. This card is mainly used for base and computer access but can be utilizes for much more. The card works as a pin in chip system and has several security features that deter unauthorized individuals access to government installations and government computers and files. When obtaining a CAC, individuals must follow a set of procedures. Employees must pass a routine background check, provide a scan of their finger prints, and have their picture taken. Information loaded on the card would consist of name, rank, security clearance, and expiration date of the card. In order to utilize the card the recipient must program the card with a password during the card issue procedures. The face of the card shows the recipients basic information as well as a picture of the authorized individual. Within the card is a chip that can only be read with a special card reader and the programmed password.
This may sound complicated, but once the software and hardware are in place it’s very simple. In fact, other government offices and civilian businesses utilize similar technologies. The fitness chain, 24 Hour Fitness, completed a trial based on the same technology with favorable results (Bulwa 2010). According to an article written in the San Francisco Chronicle, 24 Hour Fitness tested fingerprint scanning of members for several months with positive results. The draw of the biometrics technology comes from the financial standpoint. 24 Hour Fitness reported the now affordable biometrics technology saves the company money by eliminating the use for plastic membership cards. Last year the company issued out 1.9 million cards to its members.
The use of a fingerprint check have also aided in eliminating nonmembers from gaining access to their gyms. In this same article, the author interviewed a woman who admitted sneaking into the health club by using her friend’s gym membership card. The company only saw 3 percent disapproval from all the clubs who participated during the trial. According to the developers of the biometric check in device used by 24 Hour Fitness, the software is developed in such a way that a personal information leak is very marginal. “The machines, made by MorphoTrak of Alexandria, Va., map out unique points within the ridges of a finger, then convert that information into a binary code - ones and zeroes - that is encrypted” (Bulwa 2010. p 1).
With any change to an already recognized program, a need for modification must be established. In order to warrant a change for the SNAP program, the new technology would have to save money and be efficient. According to an article in the Fiscal Times, it is estimated that money lost due to fraudulent use of the EBT card averaged $750 million dollars this year alone (Pianin 2012). While several food stamp scams exist, the most common practice among dishonest recipients is the selling of the physical EBT card for cash. The way the SNAP recipient sells their card is quite simple. The recipient advertises by word of mouth or by posting ads on pubic selling sights marketing their desire to sell their benefits card for cash. Once the transaction between the two criminals is cemented the beneficiary and the buyer will agree on a specific amount of time for the buyer to use the amount on the card. After the agreed time has passed the beneficiary will report the card stolen and a new card and pin will be issued by the local welfare office. The card is sold for less than what the card is actually worth. For example, if the card has $100 dollars loaded on it, the seller will charge $50 dollars for the physical card and pin number. Why would a beneficiary be willing to accept a $50 dollar loss? By selling the benefits entitlement for cash, the benefits holder can use then use that cash for items that are not listed on the approved list such as beer, cigarettes, or toiletries.
There is very little a vendor or the government can do to pinpoint fraudulent claims other than investigating consistent card reissuing. The flaws in the system fail to provide a tally of total taxpayer money that is lost and fail to identify without a reasonable doubt the culprits. By utilizing a fingerprint system, the practice of selling benefits for cash is all but exterminated. If a CAC type card is adopted, the criminal who buys a benefits card must get through several fail saves before they are free and clear. First, the new SNAP card would have a picture that can alert a vendor. Second, they must know the password to activate the card and last they must be able to fabricate a fingerprint that can fool the approved biometric check system. As with any system, people that want to dupe the system will find a way. At least with this system, the money saved can be used to help those who are straightforward and in need.
With any newly introduced program, problems can arise. Most of these problems occur when computer specialists try to “reinvent the wheel”. Other government agencies such as the military and even the Department of Motor Vehicles use this type of technology (Bulwa 2010). Utilizing the experience of other government departments would help to isolate system hiccups. It could also identify pros and cons other departments have already learned by trial and error. Information sharing alone could save both employee time and taxpayer money.
Efficiency is another selling point for this technology. If it is not user friendly and direct then there is no need to even introduce it. Currently the Federal Bureau of Investigations (FBI) is taking steps to improve biometric technology accuracy, efficiency, and timeliness by developing a user friendly and efficient database that can be used by many government agencies (Lynch 2011). Right now the database is focusing on face recognition in support of criminal tracking and identification; however the one of the missions of the FBI is to protect the economy of this nation (Lynch 2011). It is feasible that this technology could go beyond national security and help other agencies, including The Bureau of Special Investigations (BSI), which investigates fraud cases regarding the SNAP program.
Another problem that will need to be addressed is the refusal of some US citizens to participate in this new system. This new idea could pose personal rights questions. An article published in the New York Post stated that by making a biometric system mandatory lawmakers are basically assuming all welfare recipients are crooks and out to take advantage of the system (Taylor 2011). According to the article, some lobbyists suggest fingerprinting is an infringement of civil rights. Most citizens already provide finger prints for a driver’s license. Why would it be difficult for people to provide them in order to receive food for their hungry children? By cracking down on culprits who wish to take advantage of the generosity of others, the capital of the welfare program can be divided amongst law abiding citizens who are truly in need.
Millions of taxpayer dollars are stolen from the U.S. lower class every year. A need to restructure the welfare system would not only benefit them but would save the taxpayer millions of dollars in loss. Biometric identification is no longer a novelty seen only in spy movies. Today, this science can be used to wipe out a majority of welfare benefits fraud. The embrace of new technology and tools that are readily available in this era can not only enrich the country, but its citizens, as well.