FLORHAM PARK, New Jersey — February 13, 2026
Executive Summary
Conduent Incorporated has announced a collaboration with the Alabama Department of Human Resources (DHR) to introduce chip-enabled Electronic Benefit Transfer (EBT) cards designed to enhance security and help prevent fraud affecting public assistance programs. The new chip-enabled cards are being mailed to EBT cardholders statewide and will support beneficiaries enrolled in the Supplemental Nutrition Assistance Program (SNAP) and the Temporary Assistance for Needy Families (TANF) program. Following a pilot program launched in December, Alabama has become the first Conduent-supported state — and only the second state nationwide — to deploy chip-enabled EBT cards across its full cardholder base. The rollout represents a transition from traditional magnetic stripe technology to chip-based card functionality, enabling card insertion at point-of-sale terminals and strengthening protection against skimming and unauthorized transactions.
Announcement Overview
Conduent Incorporated (Nasdaq: CNDT), a global provider of technology-driven business solutions and services, announced that it has worked with the Alabama Department of Human Resources to implement chip-enabled EBT cards throughout the state. The updated cards are intended to address rising fraud attempts targeting public assistance accounts, particularly schemes involving card skimming devices installed at retail terminals.
Historically, EBT cards have relied on magnetic stripe technology, which requires swiping at checkout and can be vulnerable to data capture through skimming hardware. By transitioning to embedded chip technology, Alabama cardholders can now insert their cards into compatible terminals rather than swiping them. Chip-based transactions generate dynamic authentication data for each purchase, reducing the likelihood that stolen card information can be reused for fraudulent activity.
According to Conduent, Alabama’s statewide deployment follows a pilot program initiated in December. With the statewide implementation, Alabama is the first Conduent-supported state to fully transition to chip-enabled EBT cards and only the second state in the nation to deploy such cards across its entire beneficiary population. Additional states supported by Conduent are preparing similar upgrades.
The rollout forms part of a broader effort to enhance public benefit payment security and provide beneficiaries with greater protection and control over their accounts.
Key Announcement Details
- Announcement Classification: Government technology collaboration and statewide public benefit security upgrade
- Collaborating Entities: Conduent Incorporated and Alabama Department of Human Resources (DHR)
- Public Company Identifier: Conduent Incorporated (Nasdaq: CNDT)
- Program Type: Electronic Benefit Transfer (EBT) modernization initiative
- Primary Objective: Prevention of EBT fraud through chip-enabled payment authentication
- Technology Introduced: Embedded EMV chip-enabled EBT cards replacing magnetic-stripe cards
- Legacy System Replaced: Magnetic-stripe-only EBT cards vulnerable to skimming
- Authentication Method Change: Card insertion at chip-enabled point-of-sale terminals instead of swipe-based transactions
- Security Mechanism: Dynamic transaction authentication via chip technology to reduce skimming and counterfeit risks
- Statewide Rollout Status: Full deployment to all Alabama EBT cardholders following December pilot program
- National Milestone: First Conduent-supported state and second state nationwide to implement chip-enabled EBT cards statewide
- Beneficiary Programs Impacted: Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF)
- Card Distribution Method: Direct mailing of newly issued chip-enabled EBT cards to existing cardholders
- Mobile Security Tool: ConnectEBT mobile application for account monitoring and card controls
- Online Account Portal: Web-based ConnectEBT cardholder portal for transaction review and account management
- User-Controlled Protection Feature: Card lock and unlock functionality to block or enable purchases
- Default Fraud Prevention Setting: Automatic blocking of out-of-state and online transactions
- Override Capability: Cardholders may unlock blocked transaction categories via mobile app or portal
- Integrated Fraud Suite: Conduent VeriSight Anti-Fraud Suite
- Call Center Fraud Controls: Adaptive fraud detection tools identifying suspicious activity such as unusual phone numbers or abnormal call volume
- Conduent Government Payment Footprint: Electronic payment disbursement support in 37 U.S. states
- Annual Government Payment Volume: Approximately $80 billion disbursed annually
- Company Workforce Scale: Approximately 51,000 global associates
- Headquarters Location: Florham Park, New Jersey
- Announcement Date: February 13, 2026
Strategic Context
Across the United States, states administering SNAP and TANF benefits have reported increasing fraud attempts targeting EBT accounts. Criminal activity has frequently involved skimming devices placed on retail point-of-sale terminals to capture card information from magnetic stripe transactions. Once compromised, account data can be used to conduct unauthorized purchases or withdraw funds, impacting beneficiaries who rely on assistance for essential needs.
Magnetic stripe cards store static data that can be replicated if captured. Chip-enabled cards, by contrast, generate a unique cryptographic code for each transaction. This dynamic authentication significantly reduces the ability of stolen data to be reused for fraudulent purchases.
Conduent stated that chip technology has long been used for debit and credit cards in commercial banking environments and that extending similar protections to EBT transactions aligns public benefit security standards with broader financial services practices.
The Alabama implementation reflects a state-level decision to modernize EBT infrastructure in response to fraud risk trends. According to the company, additional states are evaluating or preparing similar upgrades within their own benefit programs.
State Leadership Perspective
“I am so pleased to finally bring this instrumental change to our EBT cardholders statewide,” said Alabama DHR Commissioner Nancy Buckner. “After a successful pilot program, we have shown that these new cards are easy to use and offer much better protection for the benefits. I am pleased that with this chip technology upgrade, our clients can have more confidence that their benefits will be there when they purchase groceries. This is not the end; we will continue to work and develop new and innovative ways to better protect our clients and their benefits.”
Conduent Leadership Perspective
“We are honored to help Alabama DHR lead the way in giving their beneficiaries this critically important tool to protect their accounts and funds,” said Anna Sever, President, Government Solutions at Conduent. “Transitioning to chip technology is a proven fraud-prevention strategy. Chip cards are widely used across the country for other types of accounts, and EBT payments deserve the same level of security.”
ConnectEBT Application and Cardholder Controls
In addition to the chip-enabled cards, SNAP and TANF recipients in Alabama can access account management features through Conduent’s ConnectEBT mobile application and web-based cardholder portal. These digital tools provide beneficiaries with the ability to lock their accounts, temporarily blocking all purchase activity to help prevent unauthorized transactions.
Conduent also supported Alabama DHR in implementing a system enhancement that defaults EBT cards to block out-of-state and online transactions. Cardholders who wish to conduct purchases in those categories can unlock their cards through the ConnectEBT application or portal interface. This approach provides cardholders with control over transaction permissions while maintaining protective defaults.
The digital tools are designed to supplement chip-based security by offering user-directed account management capabilities.
VeriSight Anti-Fraud Suite
The chip-enabled card rollout and cardholder management tools form part of Conduent’s broader VeriSight Anti-Fraud Suite. According to the company, VeriSight includes adaptive fraud detection technologies designed for public benefit administration environments.
Within EBT customer service centers, the VeriSight system can identify potentially suspicious patterns such as unusual call volumes, anomalous phone numbers, or account behaviors inconsistent with typical activity. These tools are intended to support agencies in identifying and mitigating fraud attempts before funds are lost.
The company indicated that the suite is configurable to agency requirements and can integrate with broader public assistance administration systems.
Conduent’s Government Payment Role
Conduent serves as a national provider of electronic payment disbursement services for public programs. The company currently supports electronic payment services for public benefit programs in 37 states. Its government solutions portfolio includes EBT services, healthcare claims processing, eligibility and enrollment services, and child support administration systems.
By administering payment platforms, processing transactions, and providing fraud detection services, Conduent plays a role in the infrastructure supporting public assistance distribution across multiple jurisdictions.
The Alabama implementation builds on the company’s existing payment services footprint and reflects an extension of security measures within that infrastructure.
Broader Public Benefit Security Landscape
Public assistance programs distribute billions of dollars annually to eligible beneficiaries. Fraud incidents can undermine program integrity and disrupt access to essential benefits. The shift from magnetic stripe to chip technology represents a structural enhancement aimed at reducing systemic vulnerabilities rather than addressing isolated incidents.
Chip-enabled payment cards have become standard in retail banking environments over the past decade. Their introduction into EBT ecosystems aligns public program payment security with contemporary payment authentication practices.
The Alabama rollout demonstrates how state agencies and payment administrators can adopt commercial-grade security controls within public benefit systems.
About Conduent Incorporated
Conduent Incorporated is a technology-driven business solutions and services company headquartered in Florham Park, New Jersey. The company operates across commercial, government, and transportation sectors, delivering digital solutions designed to improve operational performance and user experiences.
Conduent leverages cloud computing, artificial intelligence, machine learning, automation, and advanced analytics to provide mission-critical services. Its portfolio includes government payment disbursement systems, healthcare claims processing, eligibility and enrollment services, HR services, tolling and transportation solutions, and customer service platforms.
The company employs approximately 51,000 associates globally. Conduent processes approximately 2.0 billion customer service interactions annually and disburses approximately $80 billion in government payments each year. In transportation services, the company processes more than 14 million tolling transactions daily. Through its HR services offerings, Conduent supports millions of employees each year across client organizations.
Conduent supports electronic payments for public programs in 37 states and provides end-to-end administrative systems for U.S. government agencies in healthcare, eligibility management, and child support administration.
The company is publicly traded on the Nasdaq under the ticker symbol CNDT. Conduent maintains a global operating footprint and delivers digital transformation services designed to enhance performance, improve efficiency, and reduce operational costs for clients across multiple industries.
Media Contact
For additional information, visit conduent.com & alabama.gov.
Source Attribution
Source: Company announcement