Card skimming scam is stealing food benefits nationwide

U.S. Secret Service Crackdown Uncovers Sleek Payment Terminal Skimmers Across Los Angeles

A nationwide surge in credit and debit card skimming has reached a new level of sophistication, according to the U.S. Secret Service, with criminals deploying devices so convincing that even security holograms and wireless data transmission are now part of the toolkit.

During a recent enforcement sweep in Los Angeles, federal agents visited 328 businesses and inspected 1,749 payment terminals. The operation led to the seizure of 16 skimming devices. The Secret Service estimates that the removed devices prevented roughly $16.6 million in potential fraud losses.

The scale of the problem extends well beyond Southern California. The agency is currently tracking 32 active federal investigations spanning 15 states, and officials estimate that skimming costs consumers and financial institutions more than $1 billion annually. A single compromised terminal can generate as much as $1 million in stolen funds.

How the Devices Work

The core technology has not changed: a skimmer is placed over a legitimate card reader, capturing account data and PIN entries when a customer swipes a card. What has changed is how quickly the devices can be installed and how realistic they appear.

Surveillance footage from one investigation shows a suspect placing a skimmer over a payment terminal in under two seconds. Once in place, the overlay mimics the real terminal, sometimes even featuring a security hologram designed to discourage closer inspection. Agents dismantling one device found miniature electronics and a wireless transmitter inside, allowing stolen data to be sent remotely to a nearby criminal. The person who installed the device does not need to return to collect it.

Focus on EBT Cards

While any consumer can fall victim, the Secret Service says organized criminal groups are increasingly targeting Electronic Benefit Transfer (EBT) cards, which many recipients use to access government food assistance through the Supplemental Nutrition Assistance Program (SNAP).

Most modern credit and debit cards now include chip-based or contactless payment options, which are significantly harder to clone. Many EBT cards, however, still rely on magnetic-stripe technology, leaving them vulnerable. Once a skimmer captures the stripe data and the associated PIN, criminals can copy the information onto a blank card and drain benefits at will.

The U.S. Department of Agriculture's Food and Nutrition Service has acknowledged that EBT skimming fraud is rising. The agency says it is working with states to roll out chip-enabled EBT cards, but the transition remains incomplete, and millions of recipients continue to use cards that require a swipe.

The impact for victims is immediate and severe. Families who rely on monthly benefits may find their accounts empty when they try to buy groceries, and recovering the funds can take days or weeks, time many cannot afford.

Enforcement and Organized Crime

The Secret Service attributes much of the skimming activity to organized criminal networks, some of which operate across state lines, installing devices at multiple locations in short succession. The agency has been conducting skimming operations throughout 2025 and into 2026, focusing on payment terminals and ATMs where suspicious activity has been reported.

This year alone, law enforcement has removed more than 400 illegal skimming devices nationwide.

Advice for Consumers

Because high-quality skimmers are designed to go unnoticed, the Secret Service recommends several precautions:

• Use contactless or tap-to-pay options whenever a terminal supports them, or pay through a digital wallet on a phone.
• Inspect card readers before swiping. Look for anything that appears loose, crooked, damaged, or misaligned. Gently wiggle the reader; an overlay may shift.
• Cover the keypad with a free hand when entering a PIN. Some skimmers pair a card reader with a separate PIN-capture device.
• Enable transaction alerts through a bank or card issuer and watch for small, unfamiliar charges. Report anything suspicious immediately.
• EBT users are urged to check account balances frequently, change their PIN at least once a month, and avoid sharing card numbers or PINs in response to unsolicited texts, calls, or emails.
• If a terminal looks altered or suspicious, do not use it. Notify store employees and, if appropriate, local law enforcement.

The Path Forward

Federal officials have identified the magnetic stripe as the weak link in the payment chain. Moving EBT cards to chip-based technology would make stripe data far harder to copy. Pilot programs for chip-enabled EBT cards have been underway in several states, but broader adoption will take time.

Until then, the Secret Service warns, anyone using a swipe-only card at a compromised terminal may be at risk, particularly those who depend on benefits for basic needs.