More than 50 people have been charged in a crackdown on organized theft rings accused of stealing millions of dollars in public assistance benefits from low-income families in California, according to a March 10 announcement by the U.S. Attorney’s Office for the Southern District of California.
The enforcement effort targets groups that allegedly exploit the state’s Electronic Benefit Transfer (EBT) system, which distributes government aid for food and housing. Authorities say these rings often use skimming devices at ATMs and point-of-sale terminals to steal account information, then drain funds before recipients can access them. The losses have left vulnerable families without essential resources.
“These criminals target people living one paycheck away from crisis,” said U.S. Attorney Adam Gordon. “Exploiting that vulnerability is as cruel as it is criminal.” Special Agent in Charge Robb R. Breeden of the U.S. Department of Health and Human Services Office of Inspector General said, “These charges underscore the serious consequences faced by individuals who exploit federal programs for personal gain. This scheme diverted valuable taxpayer funds from programs designed to support people most in need. Working closely with our law enforcement partners, HHS‑OIG will continue to pursue those who target the vulnerable and compromise public trust in government assistance programs.”
Andre Remy, Special Agent in Charge of the U.S. Secret Service’s San Diego Field Office, said, “The U.S. Secret Service and our partners on the Southern California Cyber Fraud Task Force are committed to combatting EBT fraud and credit card skimming. This years-long investigation is a testament to the hard work and tireless dedication of law enforcement to actively investigate and arrest criminals that target our most vulnerable community members.”
Recent arrests include Razvan Balu and Juan Trandafir—both Romanian nationals—accused of stealing $160,000 and $145,250 respectively from CalWORKS benefit accounts; Hassib Baraekzay and Veronica Ochoa—U.S. citizens—are each charged with stealing more than $20,000 in benefits. Since 2023, authorities have charged 52 individuals with similar crimes related to CalWORKS benefits.
Between June 2022 and January 2026, more than $310 million was stolen from EBT beneficiaries across California through unauthorized ATM withdrawals. The investigation has revealed that criminal enterprises use cloned cards encoded with stolen data to make illegal withdrawals at ATMs during early morning hours when new funds are released.
The cases are being prosecuted by Assistant U.S. Attorney Sabrina Fève. Officials urge victims to report EBT theft within ten days to local authorities.
