Cloned terminals and open coding of restricted items show the EBT system has gaping holes. Every shop that gets away with it invites more of the same. The longer this stays unpoliced the more money leaks out of the benefits program.
We went undercover inside smoke shops and bodegas across New York City to answer a simple question: Would retailers accept taxpayer-funded EBT benefits to pay for alcohol or drugs?
Store after store attempted to process EBT cards for kratom, a psychoactive substance that is not…
— James O'Keefe (@JamesOKeefeIII) July 29, 2026
COMING SOON: American Swiper Episode Two: The Disney Tapes.
Go behind the scenes of the confrontation that followed our undercover Disney investigation.
After our reporting exposed senior Disney Vice President Michael Giordano discussing alleged discriminatory hiring practices,…
— James O'Keefe (@JamesOKeefeIII) July 29, 2026
Secret Service teams have been running repeated operations in New York City catching EBT card skimmers at bodegas. Earlier federal cases already charged people for putting unauthorized EBT terminals into smoke shops and running tens of millions in fraudulent SNAP redemptions. USDA has repeatedly warned retailers that cannabis-derived and other controlled products are strictly banned from SNAP purchases.
USDA SNAP eligible foods guidance: https://fns-prod.azureedge.us/snap/food-determinations-eligible-foods
ABC7 report on prior NYC EBT skimming crackdowns: https://abc7ny.com/post/secret-service-helping-crack-down-ebt-card-skimming-bodegas-targeting-new-yorkers/19382131/