Food Stamp Fraud and SARs
Food stamp fraud is a big business involving almost $400 million each year. To identify this fraud, the customers to watch are food stores. Food stamp trafficking is performed in several ways but doesn't usually involve the sale of food. In addition to the crime of mis-using food stamps, the trafficking is often associated with money laundering.
There are several types of activity you should look for: small food stores receiving disproportionately large volumes of food-stamp- related electronic credits, deposits from food stamp credits followed by cash withdrawals, suspicious or structured withdrawals, and structured check cashing.
Copyright © 2004 Compliance Action. Originally appeared in Compliance Action, Vol. 9, No. 9, 9/04
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