USDA TARGETS SNAP CARD THEFT: Chip cards, account freezes coming to Virgin Islands

The U.S. Department of Agriculture has proposed sweeping changes to food-benefit card security that will reach the U.S. Virgin Islands, requiring chip and contactless payment technology and new account protections to combat criminals stealing SNAP benefits through card skimming and cloning.

The proposal, published in the Federal Register on October 23, addresses what the USDA says are serious weaknesses in Electronic Benefit Transfer systems that have lagged behind security standards used by credit and debit card companies. Criminals have increasingly targeted SNAP cards because they still rely heavily on magnetic-stripe technology, which can be compromised at payment terminals or through online transactions.

Under the proposed rule, households would gain new tools to protect their accounts. Recipients could freeze and unfreeze their cards at will, block out-of-state transactions, prevent online purchases and set a maximum amount per transaction. The system would also send email or text alerts for purchases and account changes, and give households access to 12 months of transaction history.

The changes would apply to all agencies issuing benefits, contractors processing transactions and retailers accepting SNAP payments across the territory. The USDA says the new protections must be accessible through an online portal, mobile app, phone and in-person requests, with support for people with disabilities and households whose primary language is not English.

Implementation would take two years after a final rule is published, giving the USDA, state and territorial agencies, payment processors and retailers time to coordinate the transition. Magnetic-stripe payments would continue during that period as a backup.

The proposal also addresses other fraud risks, including monitoring payment terminals for unauthorized access and patterns suggesting benefit trafficking. Congress directed the USDA to establish these security measures in the Consolidated Appropriations Act of 2023.

The public can submit written comments on the proposal through December 22, 2026, via Regulations.gov under docket FNS-2025-0137 or by email and mail as listed in the Federal Register notice.