ELECTRONIC BENEFIT TRANSFER

EBT Usage in North Carolina

Abstract

There are many people utilizing EBT in North Carolina, as well as in other states. EBT allows the people in need of welfare to attain basic necessities for themselves as well as their families. However, there are many people who misuse this program, some fall victims of fraud and crime. This paper discusses whether the people who use EBT commit more crime.

Table of Contents

Abstractii

Introduction1

Research Problem1

Literature Review2

Theoretical Framework12

Methodological Analysis14

Proposed Methodology16

Discussion and Conclusion21

Policy Implications and Recommendations23

References25

Appendix27

EBT Usage in North Carolina

Introduction

For many years there has been growing discontent with this country's welfare system. Part of the problem is the belief that welfare benefits are not being used for their intended purpose, which is feeding and clothing the poor. It is thought that one way to gain back the public's confidence in our welfare system is to improve its integrity. Welfare administrators face the challenge of convincing taxpayers that those receiving benefits are truly in need and will use them for their rightful purpose.

Research Problem

The research problem of this research study will be: Do people that use EBT (aka Food Stamps) in North Carolina commits more crime?

There are many people utilizing EBT in North Carolina, as well as in other states. EBT allows the people in need of welfare to attain basic necessities for themselves as well as their families. However, there are many people who misuse this program, some fall victims of fraud and crime. For many years the Paper-Based system of distributing welfare benefits has been accused of being manipulated by criminals who steal from the poor and defraud the government. The four most common forms of fraud are: (1) duplicate assistance fraud, when individuals use an assumed name and false identification to apply for benefits for which they are already receiving; (2) coupons and checks that are stolen directly from the recipients or from their mailboxes; (3) welfare benefits that are counterfeited; and (4) food stamp trafficking, which is the illegal sale and purchase of food stamps. Oftentimes recipients are attacked for their benefits or just after cashing their welfare check. This many times goes unreported, and thus may not be considered a major crime (Tharp, 2007).

Literature Review

Introduction

A planned alternative to the Paper-Based system being used by many states is the Electronic Benefits Transfer (EST) system. The EST system provides welfare benefits through an Automated Teller Machine (ATM) and a Point of Sale (POS) terminal located in grocery stores. The EST system can replace the multiple Paper Based system with a single integrated electronic system that delivers benefits for a full range of federal and state programs. The EBT system has been heavily promoted as an alternative to the more traditional Paper-Based system, "An important planned benefit of converting from paper to electronic delivery is the EST system's value in reducing fraud abuse and inefficiency" (Taipale, 2003, pp. 45).

Background of the Study

Currently, 38 states have implemented EST pilot projects or are considering implementing a pilot project ...