Alabama and Conduent Launch Chip-Enabled EBT Cards to Prevent Fraud

Alabama, in collaboration with Conduent, has introduced chip-enabled EBT cards statewide to enhance EBT fraud prevention by making benefit cards more secure against theft and skimming-based attacks for recipients of SNAP and TANF benefits. The new cards add embedded chip technology that allows beneficiaries to insert their card at point-of-sale terminals, significantly strengthening security compared with traditional magnetic-stripe-only cards.

Under this initiative, the Alabama Department of Human Resources (DHR) has already mailed chip-enabled cards to EBT cardholders after a successful pilot rollout, and they are expected to arrive with beneficiaries in the coming days. The chip upgrade follows reports of stolen benefits in recent years and aims to protect users’ funds by reducing vulnerabilities associated with magnetic stripe transactions.

The redesign of the new EBT cards includes an embedded chip for secure transactions, a three-digit security code and an expiration date, while personal information has been moved to the back of the card. SNAP and TANF benefits automatically transfer over to the new chip-enabled card, which cardholders must activate within 180 days of receipt by calling EBT customer service and providing requested details such as card number, date of birth and security code.

Alabama DHR Commissioner Nancy Buckner said that the chip rollout is a long-awaited improvement that offers better protection for beneficiaries’ funds and gives them greater confidence when making purchases. In addition, Conduent’s solutions include features that help block out-of-state and online transactions by default, a measure aimed at tightening control and reducing unauthorized use.

Retailers and POS system providers are encouraged to ensure their terminals support chip-based transactions to offer a seamless experience for cardholders, and the ConnectEBT mobile app remains available for users to lock and unlock their cards as needed for out-of-state purchases.

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