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Roger is on -- -- me now foxbusiness.com.
Switching gears and talking about the supplemental nutrition like snap program this is like an eighty billion dollar -- year benefit if you doubled to basically in the past half decade -- But Friday's a huge issue not just for the recipients of the food stamps but also the vendors in the fruit stands and -- -- -- it is leaking of this kind of -- you typically think of beneficiaries -- -- These guys are getting store owners to get in -- -- -- house.
Well what they're doing is they're checking and cash back option when they swipe -- snack cart then you know when we go to the detonator ATM machine.
When -- went back in the historic he's like your card you can say I want cash back -- -- illegal the federal government says you cannot do this and this her.
These people are swiping their cards they're getting -- -- rock store owner.
To agree to split the money and how to make at the -- -- to -- that you find someone who was in the low income neighborhoods need the money struggling to pay their rent and they're willing to go in Catholic U and split it up though.
The USDA says that this is only about 1% of the program.
Fraudulent payments but the 1% of an eighty billion dollar program 750 million dollars in taxpayer money.
This is happening all across the country.
So what's interesting about this is that 80% of the benefits of this program go to these huge supermarkets like Wal-Mart for example.
The other 20% and hang out go to these individually owned stores -- -- -- dollar stores convenience stores.
That's where this type of fraud is happening under the radar because -- wal -- not going to let you do that it's too risky for they're getting tons of money out of this program.
And if -- estimated to be 750 million probably more because it -- know about it so we know who some of the sponsors are you know -- where they because exactly -- and that lower income.
Neighborhood yeah what our regulators doing to better crack down on wall what's really interesting here is the USDA says last year they caught about.
15100 stores around the country they.
Formally banned them from participating in this program -- -- From just January to may of this year -- cost 500 fraudulent store owners around the country -- they're not allowed to participate anymore and what's allowing them to do this -- data mining technology.
So they're actually looking at how many cash registers you have in your store and how much cash you have in them.
What times of the day he's welfare beneficiaries are coming in and if it would even make sense for someone to spend 200 dollars in a bodega what do you buying in there that you're swiping.
200 dollar asking for cash back.
It -- -- -- also letting them -- electronics well -- is not that's an added layer to this exactly so there's been several -- around the country one in Waco Texas a couple pled guilty last week.
In in a fraud ring like this and other -- happened.
In Tampa Florida similarly at a convenience store.
Then there was a big bucks in union an -- six counties in New Jersey.
Five point two million dollars worth of -- at four different dollar stores that I -- Allowing cash back purchases happen and he was also letting people buy electronic in his story.
That's not part of the I know and there's all these stories -- people get angry when it for now they're struggling they're buying you know ground beef -- and the person in front of them in season EDT kite by.
In exactly it just makes people a little bit more angry.
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