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Welfare Debit Card Abuse

Updated on May 11, 2011

One would think that in this tech savvy world that the government would be able to build controls into welfare debit cards. There are enough people on welfare who need these controls because they are scammers and try to take advantage of government programs. How could the government not know this???

In California, $5 million dollars was spent by those on welfare in cash benefits at casinos from 2007 to 2010. That money was supposed to be used by those receiving it on food and clothes for themselves and children. In the same period, in LA, tens of thousands of dollars slated for Needy Families program actually was spend via debit card on strip clubs!! Are these men and women going?

That is not all. The debit cards were also used but not for food and clothing, but vacations to Las Vegas and Hawaii. Oh, also cruises to hot spots.

The U.S. Senate was irate about this and passed a bill that would control what the debit card could be used for electronically. Using the debit card for anything other than food and clothing would not be approved at the point of sale. Any casino, strip club, liquor store are now out. But, what about getting a haircut? Joining a health club? Going to ACE for hardware?

It just is too complicated for the U.S. Government!


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    • Katharella profile image

      Katharella 6 years ago from Lost in America

      I read every hub of yours I have time for. And this one strikes a chord with me too! They don't, either realize it makes it harder for people who really need assistance to get it or that they just don't CARE!

      I've known of 2 people who quit their jobs, so they could get assistance! I "defriended" them in real life (not on here) because to me it's STEALING, and the one girl her boss still lets her work and pay her cash, so she doesn't have to claim it!

      I figure there's no place in my life for people like that.

      I think it would be SO MUCH better for our economy for the government to pay for MORE social workers to go and check up on some of these people with pop in visits! The cost of paying them, out by FAR outweigh the benefits of those who cheat the system and get away with it. When I brought that up to an official, they said it would cost to much! I'm like, scratching my head going "WAIT... If they are PAID to STOP fraud, then in the long run the country would come out ahead, what is WRONG with that picture" I never got an answer! Because for some reason they must NEED people to cheat the system I guess! Sure baffles me!

    • profile image

      sara 6 years ago

      My husband works for cable company in VA and he says people pay for cable with their "VA Debit" cards...which are issued for unemployment benefits. If you're leaching off the state, you don't get cable! It's infuriating.

    • perrya profile image

      perrya 6 years ago

      There should be restrictions, maybe soon?

    • Katharella profile image

      Katharella 6 years ago from Lost in America

      Sara, while I understand what you're saying, it depends on WHY they're leaching or getting government benefits. I don't have a problem with paying for someone who fought for my freedom to have a little luxury as cable, because I know some vets who are disabled, and all wounds aren't visible, so I'd rather then have cable (even if you're talking about VA the state and not veterans) than to have them out drinking and driving. Not to mention how depressing it would be to have no job, no way to get around, no going out, if they're sitting inside with a little HONEST entertainment they might deserve it, unless you are a person who don't understand depression. I'd rather them buy cable out of my tax money than buy booze or drugs. Give an honest person some slack. :) That is said nicely I do not mean a jab ok! Your husbands taxes for working hard installing that cable might have saved a life, does it take a loss of a life to prove one might be saved? (that's a rhetorical question btw)

    • profile image

      Sarah 5 years ago

      Hi, your blog was really informative however, I am interedted as in where you got your information from regarding the $5 million being spent at casinos and the thousands of dollars at strip clubs?

    • perrya profile image

      perrya 5 years ago

      It was in the Wall Street Journel

    • Katharella profile image

      Katharella 5 years ago from Lost in America

      Since I was here last, I learned that it is electronically monitored. But what some are doing, is taking a friend who will pay them cash to buy what food/clothing they need, give them a $10.-however much discount and the person gives them the rest of the money in cash. There isn't really a way they can get around that. So if they spend that money at a casino or strip club, nobody is going to know about it unless they know the people directly... but did the AP actually print the whole truth or just what they wanted to say that could infuriate the public?

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