Food stamp fraud occurs when an individual intentionally misuses or abuses the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps. This can include misrepresenting income or household size to obtain more benefits than eligible, selling or trading SNAP benefits for cash or other goods, or using SNAP benefits to purchase ineligible items such as alcohol or tobacco.
This type of fraud is a significant concern in Michigan, as it diverts resources away from those who genuinely need assistance. In 2021, the state estimated that approximately $25 million in SNAP benefits were fraudulently obtained.