So, at the most food stamp fraud constitutes 1 percent of total spending, a not insignificant $750 million.
But what we often forget is that it's not just "welfare queens" abusing the system, it's businesses. According to Reuters:
"From Oct. 1 through Dec. 31, the USDA sanctioned more than 225 stores found to be violating program rules and permanently disqualified 350 stores for trafficking in SNAP benefits , a roughly 14 percent increase in disciplinary actions overall."
We should also keep in mind that the states have some authority to regulate eligibility for food stamps.
By Lisa Baertlein
February 6, 2012 | Reuters