There has been a nationwide increase in such schemes, especially targeting electronic benefits transfer cards, the agency said.
The U.S. Secret Service (USSS) investigated 60,000 point-of-sale card readers and terminals last year, identifying illegal card-skimming devices and preventing more than $428 million in theft, the agency said in a Jan. 16 post on X.
In total, the USSS conducted 22 outreach operations targeting electronic benefits transfer (EBT) fraud and ATM skimming in multiple cities last year, involving more than 9,000 businesses and resulting in the removal of 411 illegal skimming devices, according to a statement released on Jan. 7.
In card-skimming, criminals attach a device to a card reader or payment terminal. When a card is used, the skimming device enables a malicious actor to steal card information, such as the credit card number, CVV code, expiration date, and PIN.
According to the USSS, law enforcement agencies have seen a “nationwide increase” in skimming schemes, particularly targeting EBT cards.
“EBT fraud targets the nation’s most vulnerable communities. Each month, money is deposited into government assistance accounts intended to help families pay for food and other basic items. This enables criminals who steal card information to time their fraudulent withdrawals and purchases around the monthly deposits,” it said.
“Criminals often steal EBT and other payment card numbers by installing illegal skimming devices on ATMs, gas pumps, and merchant point-of-sale terminals. Scammers use skimming technology to capture card information from EBT cards and encode that data onto another card with a magnetic strip.”
In its statement, the USSS said that card-skimming operations were carried out across Los Angeles, Washington, Anchorage, Boston, Orlando, Charlotte, Buffalo, San Diego, New York, San Antonio, Baltimore, Tampa, Atlanta, Savannah, Memphis, Miami, and Pittsburgh.
Working alongside state, federal, and local law enforcement partners, authorities investigated point-of-sale terminals, gas pumps, and ATMs.
Teams also distributed educational materials on EBT fraud and skimming to help businesses better detect skimming devices.
For customers, the USSS advised them to inspect terminals, ATMs, and other card readers before carrying out transactions and to watch for anything that is crooked, damaged, scratched, or loose. It is recommended not to use a card reader if anything seems unusual.
The agency asked people to use debit or credit cards with chip technology whenever possible. Tap-to-pay was also recommended.
