The U.S. Secret Service announced a nationwide crackdown on payment‑terminal skimming devices after a recent operation in Los Angeles uncovered 16 illegal readers that could steal Electronic Benefit Transfer (EBT) cards. The agency says criminals are increasingly targeting the magnetic‑stripe technology still used by many EBT cards, putting vulnerable families at risk of losing their food benefits.
How the devices work
Skimmers are thin electronic modules placed over a legitimate card reader. When a shopper swipes a card, the device copies the magnetic‑stripe data and, in many cases, records the PIN entered on the keypad. Some of the devices found in the Los Angeles sweep were disguised to look like part of the terminal, even featuring a fake security hologram. Agents had to pry the units off to reveal miniature electronics and a wireless transmitter that can send the stolen data to a nearby criminal.
Scale of the problem
The Secret Service estimates that a single skimmer can generate up to $1 million in stolen funds. Nationwide, 32 active federal investigations span 15 states, and the agency projects that skimming costs consumers and financial institutions more than $1 billion each year. During 2025 operations, law‑enforcement removed more than 400 illegal skimming devices, and the agency expects the activity to continue growing, especially against EBT cards.
Impact on benefit recipients
Families who depend on SNAP (Supplemental Nutrition Assistance Program) benefits may discover their accounts drained at the grocery store or when trying to pay for everyday necessities. Because many EBT transactions still require a magnetic‑stripe swipe, the stolen data can be copied onto a new card and used with the victim’s PIN to withdraw benefits. Recovering lost benefits can take weeks, leaving households without the money they counted on for food.
Federal response and future safeguards
The Department of Agriculture’s Food and Nutrition Service acknowledges the rise in EBT fraud linked to skimming and is working with states to modernize SNAP systems, including the rollout of chip‑enabled EBT cards. Chip technology stores card information in a secure element that is far harder to copy than magnetic‑stripe data. However, the transition will take time, and millions of recipients will continue using swipe‑only cards in the interim.
What consumers can do
The Secret Service recommends shoppers use contactless payment methods—tap‑to‑pay or digital wallets—whenever possible. If a terminal only accepts swipes, take a moment to inspect the reader for loose parts, gaps, or anything that looks out of place. Shield the keypad with your hand when entering a PIN, and enable transaction alerts through your bank or card issuer.
EBT users should regularly review their account statements for unauthorized transactions, change their PIN at least once a month, and never share their card number or PIN in response to unsolicited calls, texts, or emails. If suspicious activity is detected, contact the state EBT agency immediately.
Law‑enforcement outlook
Investigators have linked some skimming operations to organized criminal groups that travel across state lines to install devices quickly—often in under two seconds, according to surveillance footage. The Secret Service says coordinated efforts make it harder to track and dismantle these networks, underscoring the need for continued federal and local cooperation.
While many credit and debit cards now feature chip or contactless technology, the persistence of magnetic‑stripe EBT cards creates a vulnerable target. Until the nationwide upgrade to chip‑enabled cards is complete, families must remain vigilant and employ the simple protective steps outlined above.
Original reporting: Fox News (HLL/CB) — read the source article.
