State leaders approve $27M contract to secure EBT benefits amid ongoing theft concerns

BALTIMORE -- To ensure low-income families get the help they need, state leaders approved a contract to make EBT benefits more secure.

However, there could be a challenge to this move.

For years, WJZ has reported on how EBT benefits have been stolen from Marylanders. Around 943,000 people use these benefits, according to the Maryland Department of Human Services.

These benefits include the Supplemental Nutrition Assistance Program, or SNAP, and other cash assistance.

Most of the theft has happened through card skiming, according to state authorities.

Since last year, DHS has reimbursed millions of dollars in stolen benefits.

"We've replaced $27.1 million in stolen benefits to over 41,000 Maryland households," Maryland Secretary of Human Services Rafael Lopez said.

It's why the Maryland Board of Public Works, the state's spending board, unanimously approved a nearly $20 million contract at its meeting Wednesday.

The contract was awarded to the company Conduent, with the promise of putting encrypted chip technology on EBT cards.

Conduent has been distributing the state's EBT benefits since 2007.

Before the approval, Lopez told the board this move was urgent.

"It is Marylanders who will pay the ultimate price in stolen benefits, through no fault of their own," he said. "They deserve better."

But, Mike Miller, attorney with Fidelity Information Services -- the other company trying to get a contract approved to provide these services -- called the Conduent deal unlawful.

At Wednesday's meeting, Miller said chip cards will be rolled out no matter what.

"These EMV chip card technologies will be implemented, whether it's by Conduent or FIS at some point next year, not this year," Miller said.

Miller also reminded the board FIS has a July 31 hearing to make their case for an appeal with the Maryland State Board of Contract Appeals.

Lopez is confident Conduent's contract will stand.

"We would not bring to you, the constitutional officers of Maryland, an unlawful contract to sign. We just wouldn't do it," Lopez said.

Despite the challenge, the new contract was made effective immediately on Wednesday.