I'm sure this happens a lot more often. The guy selling the stuff doesn't care how it gets paid for. The customers want what they want, but don't want to use their money to buy it. Win/win. Except the taxpayer gets screwed in the end. No wonder hard working tax payers want to clamp down on benefits fraud. Check out the vehicles that some of the EBT crowd hop in after shopping on your dime. America, gotta love it.
http://freebeacon.com/issues/609398-worth-of-food-stamps-redeemed-for-cologne-cigarettes/
http://freebeacon.com/issues/609398-worth-of-food-stamps-redeemed-for-cologne-cigarettes/