Missoula, MT – Montana leaders have secured a federal grant aimed at enhancing the state’s ability to detect and prevent fraud in applications for public assistance programs. The $424,388 grant, awarded by the U.S. Department of Agriculture (USDA), will allow the Montana Department of Public Health and Human Services (DPHHS) to implement new technology to identify fraudulent online applications.
The federal funding will specifically target the Supplemental Nutrition Assistance Program (SNAP), commonly known as food stamps, though the system will also impact other public assistance programs. Montana operates a single application for SNAP, the Temporary Assistance for Needy Families (TANF) program, Medicaid eligibility, and the Low-Income Home Energy Assistance Program. As a result, the new fraud detection system will address potential issues across all these programs.
According to Heather Smith, DPHHS’ Program Compliance Bureau chief, there has been a nationwide uptick in online fraud. “All states across the U.S. are reporting an increase in online fraud, and this is going to give Montana the opportunity to evaluate its current situation,” Smith said.
The new system will use advanced technology to flag potential fraud indicators. For example, it will identify applications submitted by individuals living outside Montana or applications coming from the same computer or phone number multiple times. Other red flags could include discrepancies in household member reporting, undeclared income increases, or continued benefit receipt after moving out of state.
While the new system will automatically flag high-probability fraud cases, Smith emphasized that it will not take immediate action. Instead, the system will alert DPHHS staff to conduct further investigations. Smith acknowledged the potential for false positives, such as applicants using a relative’s computer or accessing a public computer at a library, but emphasized that the goal is to identify genuine fraud without unfairly penalizing innocent applicants.
The department expects to spend the next few months developing and testing the system, with plans to implement it by the summer of 2025. Smith reassured that the new technology would not change the application process for users. “It will not affect the user at all; they won’t see any different steps,” she explained. “It will just be our ability to capture and utilize that data as it comes in.”
Although DPHHS did not provide a precise estimate of fraud prevalence in the state, Smith noted that any amount of fraud is a concern. “For us, any amount is a high amount,” she said.
The initiative aligns with DPHHS’ commitment to ensure responsible stewardship of taxpayer money. In the 2024 fiscal year, the department received 1,528 referrals for potential fraud, most of which were related to SNAP eligibility. As a result, 241 individuals were disqualified from the SNAP program for violations. Similar trends were observed in the previous two years, with 1,625 referrals and 280 disqualifications in 2023, and 2,035 referrals and 320 disqualifications in 2022.
With the new system in place, Montana hopes to strengthen its ability to identify and address fraudulent activity, safeguarding public funds and ensuring that assistance reaches those who truly need it.
