DPSS ePolicy

What changed?

• The EBT 2259, Report of Electronic Theft of Benefits form, has been updated to the March 2024 version. 
• The requirements to change the Electronic Benefits Transfer (EBT) card Personal Identification Number (PIN) in person have been updated. 
• Clarification has been added on how to determine the number of countable CalFresh benefit replacements due to electronic theft. 
• Clarification for processing of Skills and Training to Achieve Readiness for Tomorrow (START) benefit replacement.
  

Note: Changes are shown highlighted in grey throughout the document.

EBT

Eligible HHs, Assistance Units (AU), or individuals receive their benefits through the use of EBT card technology at Automated Teller Machine (ATM) and Point of Sale (POS) terminals. 

Electronic Theft - Skimming

Skimming is a type of electronic benefits theft that involves using electronic equipment to capture a HH/AUs EBT card information without the HH/AUs knowledge. The theft occurs when a participant (or authorized representative) has not lost physical possession of the EBT card nor shared their PIN with anyone, and benefits are electronically stolen from their EBT account. 

Note: The participant's claim should not be denied just because the participant does not have possession of their EBT card.

Electronic Theft - Scamming

Scamming is a type of electronic benefits theft that involves deceiving or misleading a participant to give their EBT account information and then stealing the participant's benefits from their EBT account.

Scams can result from a text message, an automated telephone call, or a telephone call from a live person. The messages may threaten to withhold benefits, indicate a problem with the participant's benefits, or promise the participant increased benefits.

For example, participants who receive a text message or call and respond to the message are greeted by an automated answering voice that often sounds identical to the legitimate EBT Customer Service. The participant is asked to enter their EBT account number and PIN, and then the call disconnects.

Typical scamming practices include, but are not limited to:

• Participant lives in one city, and benefits are stolen in another city; 
• There may be numerous inquiries to check the balance of accounts before benefits are stolen; 
• Benefits may be stolen in a single large transaction or a series of smaller transactions over time; 
• All the benefits are stolen; 
• ATM benefits are usually stolen between the hours of midnight to 6:00 a.m.; or 
• There may be a PIN change before the benefits are stolen.

Note: Staff must remind HH/AUs to never give out their EBT card number and PIN to anyone and be aware that no county, State, or federal government employee will ask for their EBT PIN.

To be eligible for benefit replacement, the CalFresh HH must file the EBT 2259 (3/24) within 90 calendar days from the date of the theft. 

Note: The EBT Scamming Acknowledgement (EBT 2259A) is no longer required for electronic CalFresh benefit theft claims. 

All claims for request for replacement of benefits lost due to electronic theft should be evaluated, and if determined eligible, replacement benefits should be issued.

CalFresh HHs that report electronic benefits theft are eligible to receive up to two months' worth of CalFresh benefits for each countable replacement of electronic benefits theft. The amount replaced must be equal to the amount of electronically stolen benefits but cannot exceed the equivalent of two months’ worth of their last monthly allotment when the theft occurred. A “countable” replacement includes benefits that are lost via electronic theft. Despite the number of requests made by the HH, no more than two replacements can be approved in each FFY.

The amount replaced may exceed a two-month maximum allotment when the amount of the loss includes benefits that have been replaced due to a natural disaster.

In addition, California Fruit & Vegetable incentive benefits will be eligible for replacement if stolen electronically via skimming or scamming.

Benefits may be skimmed in a single large transaction or a series of smaller transactions over time. Furthermore, a countable replacement may be a series of losses but will count as one benefit replacement with each request.

For electronic theft, the HH must contact the Department of Public Social Services (DPSS) via the Customer Service Center (CSC) at (866) 613-3777, visit a district office or log in to BenefitsCal to report the electronic theft.

To be eligible for benefit replacement, the AU/HH must file the EBT 2259 (3/24) within 90 calendar days from the date of the theft.

Note: The EBT Scamming Acknowledgment (EBT 2259A) is required for electronic cash benefit theft claims.

When a participant reports their cash benefits were electronically stolen, the benefits may only be replaced if any of the following conditions are met:

1.  The participant reports that their EBT cash benefits were stolen electronically, and the participant has not shared their PIN with anyone (skimming); or
   
2.  The participant reports that their EBT benefits were stolen after they unsuspectingly gave their EBT card number and/or PIN to an unauthorized third party who is taking part in a scam (scamming). 

Note: A skimming/scamming reimbursement is not counted as income or property in the month paid or in the next month. 

When EBT benefits are not received or they are accessed by an unauthorized person and the conditions above are met, the benefits may be reissued after the participant submits the required documents.

For electronic theft, the AU/HH must contact DPSS via the CSC at (866) 613-3777, visit a district office or log in to BenefitsCal to report the electronic theft.

The EBT 2259 (3/24) form must be completed and submitted to report a claim of EBT electronic theft (skimming or scamming) when CalFresh and/or cash benefits are lost due to electronic benefit theft within 90 calendar days from the date of the reported loss.

The EBT 2259 (3/24) must be filled out completely, including a list of the disputed transactions, the participant's signature, and the date. The EBT 2259 (3/24) includes an instruction page to assist the participant with completing the form. The instruction page also includes helpful tips for participants, including keeping their EBT card and PIN safe to help prevent electronic theft or scamming.

The 3/24 version of the EBT 2259 is available in the California Statewide Automated Welfare System (CalSAWS), BenefitsCal, and the Forms Library in all threshold languages. When the form is needed in a language for which we do not have a translation, staff must use the GEN 1365 – Notice of Language Services. However, if an older version of the form is submitted by the HH/AU, staff must not ask the HH to resubmit the new version. Instead, staff must make it clear to the participant that a claim number and a police report are no longer required.

The EBT 2259 (3/24) includes the following:

• Check boxes for the participant to indicate if the loss results from skimming or scamming; 
• “County Use Only” boxes for the County to indicate if the claim was approved or denied; and 
• Signature lines in the “County Use Only” section to indicate who authorized the claim.

Note: Participant's experiencing benefits theft are strongly encouraged to report instances of theft to their local law enforcement agency for criminal investigations and prosecutions. However, filing a police report is not required for benefit reimbursements. 

In addition to the EBT 2259 (3/24), the EBT 2259A form must be completed when cash benefits were lost due to “scamming.”

This form is used to reaffirm the participant's responsibility for protecting their EBT account information and for the participant's acknowledgment that replacement for scams may only occur once in 36 months for cash programs.

The M44-350K must be provided to the participant when an electronic theft claim is denied. An electronic theft claim is denied when:

1. The claim does not meet the criterion of electronic theft via skimming or scamming; and/or
   
2. The participant does not comply with the electronic skimming or scamming requirements. 

Note: This Notice of Action (NOA) replaced the NA 290.

The M44-350L must be provided to the participant to inform the participant of the cash overpayment if it is determined that the participant was not entitled to replacement benefits.

Note: This NOA was revised to include verbiage regarding scamming. 

When the electronic skimming or scamming claim is approved, the WI 10072A must be provided to the participant.

Note: This NOA replaced the NA 290.

An electronic scamming claim that requires an extensive review and/or investigation of the case when the AU/HH had more than one scammed cash benefit request within 36 months. The County is not required to issue the replacement until case-specific facts have been gathered to allow the County to make an informed determination of whether to approve or deny the claim. During the review process, the WI 10072B must be provided to the participant.