In a decisive move to combat the growing threat of electronic benefit transfer (EBT) card fraud, Alabama has partnered with Conduent Incorporated to launch new chip-enabled EBT cards statewide. This initiative, announced early Friday by Conduent and the Alabama Department of Human Resources (DHR), marks a significant technological leap for public assistance programs, particularly those serving Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF) beneficiaries.
The new cards, embedded with advanced chip technology, are designed to significantly enhance account security for thousands of Alabamians who rely on these benefits. According to Conduent, the chip generates a unique, one-time encrypted code for each transaction, making it much more difficult for thieves to clone or misuse card data. This is a substantial improvement over traditional magnetic stripe cards, which have been increasingly targeted by criminals using skimming devices attached to point-of-sale terminals.
"With this chip technology upgrade, our clients can have more confidence that their benefits will be there when they purchase groceries," said Nancy Buckner, DHR commissioner for the state, in a statement reported by Conduent. Buckner emphasized that the rollout is not the end of the department’s efforts: "This is not the end; we will continue to work and develop new and innovative ways to better protect our clients and their benefits."
The Alabama program follows a pilot phase conducted with Conduent since December 2025. The full statewide implementation now makes Alabama the first state using Conduent to adopt chip technology for EBT cards and only the second in the nation—after California—to do so with any vendor. Seven other states currently have similar programs in progress, and Conduent notes that more states are preparing to follow suit.
For beneficiaries, the introduction of these chip cards brings more than just improved security at checkout. The cards are paired with enhanced account control features through the ConnectEBT mobile app. Users can now lock their accounts directly from their phones, blocking all purchases instantly if they suspect suspicious activity or simply wish to safeguard their funds. This level of control is a first for many EBT recipients, who have long been vulnerable to external threats with limited recourse.
Additionally, Alabama’s DHR has implemented a system enhancement that automatically blocks out-of-state and online transactions for all EBT cards. Beneficiaries can easily unlock their cards for legitimate use through the app, providing a powerful tool to prevent unauthorized spending and ensure that benefits are available when needed. According to Businesswire, these measures are expected to significantly reduce fraud attempts targeting EBT cards.
Conduent’s role in this transformation is grounded in its broader expertise as a technology-led business process solutions provider. The company supports electronic payments for public programs in 37 states and processes about $85 billion in government payments annually. Its VeriSight Anti-Fraud Suite, a set of adaptive fraud detection tools, is at the heart of the new system. This suite is capable of identifying and blocking suspicious activities in real time, adding another layer of protection for government payment disbursements.
Conduent CEO Harsha Agadi has been vocal about the company’s commitment to innovation and security in public benefit programs. Agadi outlined a turnaround strategy focused on faster decision-making, strict financial discipline, and cost structure optimization. This approach, he said, is aimed at driving consistent revenue and earnings growth while enhancing market competitiveness. "We are committed to rapid execution and portfolio optimization to achieve sustainable growth," Agadi stated, as reported by Intellectia’s earnings and market brief reports.
The business case for Conduent’s technological leadership is underscored by recent financial performance. In the fourth quarter of 2025, the company signed $152 million in new business annual contract value (ACV), an 11% increase compared to the previous year’s quarter. Total new business ACV for the year reached $517 million, reflecting strong demand for its solutions. However, the company also reported some volatility: adjusted revenue for 2025 came in at $3.04 billion, down 4.2% year-over-year, and adjusted EBITDA reached $164 million, with an EBITDA margin of 5.4%.
Despite these positive signs, Conduent’s Q4 2025 revenue of $770 million represented a 3.8% year-over-year decline, and its non-GAAP earnings per share of -$0.09 missed expectations by $0.07. Following the earnings report, Conduent’s shares fell by 7.5%, reflecting investor concerns about the company’s future outlook and its ability to navigate competitive pressures and market uncertainties.
Looking ahead, Conduent’s management has promised to provide more detailed strategic and financial guidance in upcoming earnings reports, acknowledging risks from artificial intelligence-driven market disruptions and negative free cash flow impacts. The company’s focus remains on rapid execution and portfolio optimization to achieve sustainable growth—a strategy that may resonate with investors as the company continues to drive innovation in government payment security.
For Alabama, the statewide rollout of chip-enabled EBT cards is a milestone in public welfare security. The move comes at a time when states across the country are grappling with a rising tide of fraud attacks on EBT cards. According to Conduent, chip cards are seen as a more secure solution because they render stolen card data useless to thieves, thanks to the one-time encrypted codes generated for each transaction.
Numbers regarding the total volume of chip cards issued in Alabama were not immediately available. However, the expansion is expected to cover all EBT cardholders in the state, providing a robust defense against fraud and reinforcing public trust in essential government programs. As more states prepare similar rollouts, Alabama’s experience may serve as a model for others seeking to modernize and secure their benefit delivery systems.
Conduent’s involvement extends beyond EBT cards. The company also handles healthcare claims processing and other duties for U.S. government agencies, demonstrating its broad capabilities in supporting public sector operations. With approximately 53,000 associates worldwide and a strong focus on digital transformation services, Conduent processes around 2.3 billion customer service interactions each year, according to its company overview.
As the landscape of public assistance evolves, the partnership between Alabama and Conduent stands out as a testament to the power of innovation in safeguarding the integrity of social safety nets. Beneficiaries, state agencies, and technology providers alike will be watching closely as the new chip-enabled EBT cards make their way into the hands of those who need them most, offering a renewed sense of security—and hope—that their benefits will be protected from fraudsters.