Monday, September 25, 2006

This is how investigators say the cash-for-cards scam works:

STEP 1

A welfare recipient comes into a store with a Link food-stamp card credited by the government with a dollar amount for groceries, $100, for example.

STEP 2

The store clerk swipes the card through a government computer terminal and takes credit for $100 in phony food sales.

STEP 3

Then the clerk hands $70 - the going rate of return is about 70 cents on the dollar - to the welfare recipient and keeps the rest as profit.

STEP 4

Part of the crooked store owners' proceeds are often shipped overseas.

STEP 5

Investigators suspect some of that money is winding up in the hands of terrorists.


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