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 IIIPosted on by yesthatjallenWe 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.” 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.