Hypothesis

Statistically, I think that food stamp abuse and error is on the decline.

However, this is only reported cases of abuse, such as caseworkers attributing more credit to a card than necessary.  This does not include more small scale, harder to detect operations such as the resale of soda.

It has been rumored that soon pop will no longer be covered by an EBT card.  This, in effect, would prevent further abuse of the system in this particular way.  However, these transactions are difficult to investigate as pop is currently allowed, along with other non nutritional foods, to be purchased on EBT.  

Thus, I hypothesize that food stamp abuse rates will gradually decline statistically, but as long as soda is unmonitored on EBT cards, this form of abuse will persist.

Fraud/Abuse- possibly store's fault?

Working at a grocery store, I've been first hand witness of food stamp manipulation.  I've loaded enumerable amounts of pop into the backs of dusty old pick up trucks, all purchased with food stamps.  Ridiculous numbers of pop- that no one family could consume.  Ignoring this fact, the most obvious and striking form of abuse, there is also error on a stores part which is wasteful of tax dollars.

EBT cards cannot cover pet food, medicines, cigarettes, alcohol, paper products, or almost anything inedible.  Imagine a hypothetical situation, though.  A small convenience store clerk has the ability to grant anything a person wants with the press of a button, simply changing any item from "taxable grocery" to "grocery."  Sometimes, cashiers ring up items incorrectly, for example, placing sandwich bags under the "grocery" department.  This accidentally allows the purchase of taxable, non-food stamp covered items to end up being charged to the card. 

In turn, many thousands of tax dollars are spent in error or abuse.

Food Stamp fraud declining?

http://usgovinfo.about.com/od/healthcare/a/foodstampgao.htm

This article seems to suggest the rate of food stamp fraud is on the gradual decline.  

Rates of non qualified recipients decreased by one third since 1999, and benefits given in error decreased in 41 states.

However, this only takes into account errors by the case workers and distribution of food stamp benefits. This does not consider the private wrong doings of food stamp recipients. For example, the buying of pop and reselling, couldn't be traced merely through statistics.

EBT-card abuse is not only a problem among individuals, but it can also be perpetrated by companies as well.

In this case in Florida, a family business was trading food stamp credit for money.

The Electronic Benefit Transfer card (EBT) has not prevented this aspect, and has only allowed a more high-tech illegality. In the beginnings of the food stamp program, people were trading tangible "stamps," now they have adapted to the trade of currency for the credit on the EBT card.

EBT Cards

The EBT Foodstamp card has caused an improvement in speed and accessibility among its users.  However does this accessibility give fraudulent users the upper hand, making it easier to abuse?