WASHINGTON (TNND) — Federal agents backed by Los Angeles police swarmed a party supply store along Skid Row in Los Angeles as part of an alleged SNAP fraud investigation that ended with an arrest. Authorities arrested 30-year-old Jesse Cervantes-Gomez, a cashier accused of paying kickbacks to welfare recipients for bogus purchases and allegedly exchanging SNAP benefits for cash in what was described as a “kickbacks for welfare scam.”
First Assistant U.S. Attorney for the Central District of California Bill Essayli also shared the story, writing on social media, “Fraud doesn’t pay in LA!” In an interview with The National News Desk in June, Essayli also discussed his office’s ramped-up approach to investigating fraud. (TNND)
Federal investigators identified the store as a potential fraud target after noticing it processed more than $730,000 in SNAP purchases over the course of a year….
This remains the most prevalent form of financial crime globally. It targets the direct access points to your money: your cards and your bank accounts.
- Skimming: Criminals use small devices called “skimmers” placed over ATM or point-of-sale card slots to capture the data from your card’s magnetic strip.
- Card-Not-Present (CNP) Fraud: This occurs during online shopping where a physical card isn’t required. Thieves use stolen card numbers, expiry dates, and CVV codes to make unauthorized purchases.
- Account Takeover (ATO): A hacker gains access to your online banking credentials (often through malware or phishing) and changes the contact details or passwords, locking you out while they drain your funds.