Food Assistance: Reducing Fraud and Abuse in the Food Stamp Program With
Electronic Benefit Transfer Technologies (Testimony, 02/02/94,
GAO/T-RCED-94-125).

GAO testified that electronic benefit transfers could reduce fraud and
abuse in the Food Stamp Program, particularly counterfeiting and mail
theft.  It is doubtful, however, that this technology would have a large
impact on fraud and abuse that occur when recipients apply for food
stamp coupons and states make eligibility decisions.  Further, although
the technology could potentially reduce the sale or trading of food
stamps, the amount of the reduction is unclear.  If electronic benefit
transfer systems are put in place solely to distribute food stamp
benefits, they could be more costly to the federal government than the
current coupon-based system; the technology becomes more cost-effective
when used in conjunction with other government assistance programs, such
as Aid to Families With Dependent Children.  Several states have already
moved in this direction.  The federal government is likely to benefit
most if it uses the technology to deliver multiple program benefits
rather than food stamps alone.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-94-125
     TITLE:  Food Assistance: Reducing Fraud and Abuse in the Food Stamp 
             Program With Electronic Benefit Transfer
             Technologies
      DATE:  02/02/94
   SUBJECT:  Food relief programs
             Aid to families with dependent children
             Food stamp programs
             Crime prevention
             Program abuses
             Public assistance programs
             Welfare recipients
             Mail fraud
             Electronic funds transfer
             Internal controls
IDENTIFIER:  AFDC
             Special Supplemental Food Program for Women, Infants, and 
             Children
             Food Stamp Fraud Reduction Act of 1993
             WIC
             
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