52 charged in California EBT theft scheme that stole millions from low-income families

CALIFORNIA – Federal prosecutors announced charges against 52 people in a sweeping crackdown on organized rings accused of stealing millions from California Electronic Benefit Transfer (EBT) accounts.

The cases are part of an ongoing enforcement effort in the Southern District of California targeting crews that allegedly exploit the government’s EBT system.

Investigators say members of these rings target ATMs in the pre-dawn hours after benefits are dispersed, rapidly draining compromised accounts and leaving victims without the essential funds they rely on.

“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.”

Defendant withdrew nearly $160,000 from California EBT accounts

CalWORKS administers federal grants designed to help families remain housed.

Four of the most recent defendants appeared in federal court last week on charges of stealing public assistance benefits from low-income families who rely on the funds for food, housing and other necessities.

The defendants are Razvan Balu, Juan Trandafir, Hassib Baraekzay and Veronica Ochoa. Balu and Trandafir, both Romanian nationals, are accused of stealing $160,000 and $145,250 from victims’ CalWORKS accounts.

Baraekzay and Ochoa, both U.S. citizens, are charged with stealing more than $20,000 each in CalWORKS benefits.

Balu was arrested March 1 in Los Angeles County during an operation targeting EBT ATM skimming. Baraekzay and Ochoa were arrested in San Diego County on March 2 and 3.

According to the complaint, between Jan. 1 and March 1, 2026, Balu used the public assistance account information of about 210 victims in San Diego, Fresno, Los Angeles, Kern, Kings and Tulare counties.

He used the account information to make unauthorized ATM withdrawals in Los Angeles County, stealing funds from victims’ public assistance accounts.

During that period, Balu attempted to withdraw $196,650 and successfully withdrew $159,990 from the victims’ accounts.

Skimmers installed on point-of-sale terminals

EBT is a card-based system used to distribute benefits such as CalFresh and CalWORKs. It works like a debit card, allowing recipients to buy food and withdraw cash at participating retailers and ATMs.

According to charging documents, the U.S. Secret Service found criminal groups stealing California EBT account information using skimmers placed on point-of-sale terminals and ATMs.

The skimmed data is re-encoded onto cards used to make unauthorized withdrawals and purchases.

These re-encoded cards are sometimes referred to as “cloned” cards.

Cloned cards can be blank white plastic cards or other debit, credit, or gift cards, and may have names or numbers embossed on the front. A common feature of cloned cards is that the account number encoded on the magnetic strip does not match the number embossed on the card’s face.

To facilitate the theft, members of the scheme often place stickers on the cards listing the account’s PIN and balance.

With cloned cards, PINs and expected balances, thieves hit ATMs in the pre-dawn hours to drain benefits before recipients can access them.

52 theft cases since 2023

Last week’s arrests bring the total charged in CalWORKS theft cases by the U.S. Attorney’s Office in San Diego to 52 since 2023. The arrests were made by the U.S. Secret Service’s Southern California Cyber Fraud Task Force (SoCal CFTF).

Defendants sentenced so far in the crackdown are responsible for stealing at least $4 million from the EBT accounts of hundreds of California victims, including many in San Diego County.

Federal authorities say EBT fraud and ATM skimming have become a growing problem across California as organized theft rings target public assistance benefits.

Between June 2022 and January 2026, more than $310 million was stolen from EBT beneficiaries in California, mostly through unauthorized ATM withdrawals.

San Diego County’s Department of Health and Human Services Agency requires EBT theft to be reported within 10 days. More information is available at:

https://www.sandiegocounty.gov/content/sdc/hhsa/programs/ssp/ebt_fraud.html.