FRAUD IS THE NEW DOPE PART 1: NYC Clerks Caught Undercover Processing EBT Cards For Drug & Alcohol Purchases As “EBT Cash” & “EBT Food”

X ^ | 07 29 2026 | James OKeefe III

[yesthatjallen]

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 eligible for purchase with SNAP or EBT benefits. One clerk attempted to process the purchase as “EBT Cash.” Another processed it as “EBT Food”, treating kratom as if it were groceries.

Federal law 7 CFR 278 and 7 U.S.C 2012 prohibits retailers from accepting SNAP or EBT benefits for non-food items, including drugs, alcohol, and tobacco. According to the investigation, these transactions may violate federal SNAP regulations, New York State regulations, and the USDA SNAP Retailer Agreement.

SNIP

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TOPICS: Chit/Chat; Miscellaneous
KEYWORDS: demagogicparty; dsa; ebt; fraud; fraudtruth; jamesokeefe; koranimals; kratom; newyorkcity; omg; snap; waronamerica; zohranmamdani

[yesthatjallen]

18 min. X video at link.

[T.B. Yoits]

EBT programs are to subsidize the retailers and suppliers, not the recipients nor taxpaying victims.

[Red Badger]

Quart of milk and a quart of booze. No difference.............

[SaveFerris]

(EBT programs are to subsidize the retailers)

I suspect that’s why Walmart doesn’t often
have cops at the doors (once in awhile they do)

They’re afraid it will run off too many
EBT and Food Stamp users from spending government money

[edwinland]

I was in line behind a woman who used her EBT card to buy a brush for 2.50. The cashier must have known her (or recognized the pattern) because he asked “do you want cash back with that?”

“500 dollars.”

No please, no thank you.