The Southern California District Attorney’s Office announced on Tuesday (10th) that 52 people have been indicted in a years-long operation against an organized theft ring. Most of the defendants are accused of using skimming devices to clone the welfare cards of low-income residents in California and then make unauthorized transactions.
Prosecutors stated that these indictments are part of law enforcement efforts in Southern California aimed at combating criminal gangs abusing the Electronic Benefit Transfer (EBT) system, with many of the crime syndicates having ties to Romania.
The EBT card system is used by the government to distribute welfare benefits, such as the CalFresh food assistance program and the CalWORKs cash aid program in California. Each month, the government deposits benefits onto recipients’ debit cards, which can be used at various retailers to purchase food or withdrawn directly from ATMs.
Investigators noted that members of these gangs often gather near ATMs in the early hours of the morning to quickly withdraw funds from the accounts of victims after welfare benefits are released by the state.
The method of account theft involves creating cloned cards using advanced technology. This means that the victim’s card may not be lost, but the funds in the account disappear.
EBT theft cases have had a significant impact on California, with losses being particularly severe in recent years. Between June 2022 and January 2026, over $310 million in welfare funds meant for EBT beneficiaries in California were stolen, with a large portion being siphoned through unauthorized ATM withdrawals.
Since 2023, the San Diego Federal Prosecutor’s Office has brought charges against 52 individuals for stealing welfare funds. These federal arrest operations are overseen by the Southern California Cyber Fraud Task Force (SoCal CFTF).
In cases where convictions have been secured, the defendants collectively stole at least $4 million from the EBT accounts of hundreds of victims in California.
Last week, four defendants appeared in federal court for trial on charges related to the theft of welfare funds from low-income families.
The four defendants are Razvan Balu, Juan Trandafir, Hassib Baraekzay, and Veronica Ochoa. Balu and Trandafir are both of Romanian nationality.
Balu was arrested in Los Angeles County on March 1st. According to the indictment, from January 1st to March 1st of this year, Balu used the account information of approximately 210 victims to withdraw around $160,000 from ATMs. Victims were located in San Diego County, Los Angeles County, and Fresno County, among others.
Trandafir, on the other hand, stole around $145,000 in welfare funds, while the other two defendants each stole over $20,000.
According to the indictment, the criminal syndicate stole victims’ EBT account information by installing skimming devices, known as card skimmers, on gas station card readers, point-of-sale terminals, or ATMs. (For tips on identifying card skimmers, please refer to the official information from the Los Angeles County government.)
The stolen data is typically encoded onto the magnetic strip of a card to create a cloned card, known as a “cloned card.”
Cloned cards may appear as blank white plastic cards or as other financial, credit, or gift cards. However, a common feature is that the account number encoded on the magnetic strip does not match the printed account number on the card face.
Once in possession of the cloned card, account PIN, and estimated balance, thieves often visit ATMs in the early hours to withdraw welfare funds from victims’ accounts. Officials advise the public to report stolen EBT benefits immediately upon discovery.