The U.S. Secret Service’s New York Field Office recently announced a successful three-day operation targeting payment card skimming and Electronic Benefits Transfer (EBT) fraud, which prevented potential losses of about $67.8 million for New York consumers.
This operation took place from October 7th to 9th, with Secret Service personnel collaborating with local and federal law enforcement agencies to visit 943 New York merchants. They inspected ATMs, gas pumps, and merchants’ card terminals, successfully dismantling multiple illegal skimming devices. A total of 4,086 card terminals were examined, leading to the discovery of 65 skimming devices, a record-high number.
Matt McCool, the supervisor of the Special Agents in charge of the Secret Service’s New York Field Office, stated, “The amount of fraud exposed in this operation is astonishing. This serves as a warning to criminals – we are watching you, and we will remain vigilant until we stop you and bring you to justice. EBT fraud often targets the most vulnerable populations who rely on these funds to feed their families. The Secret Service is committed to combatting fraud and safeguarding the national financial system.”
In addition to inspecting and dismantling devices, law enforcement officers also distributed educational materials to merchants to help them identify suspicious skimming devices.
Skimming refers to the installation of illegal devices by criminals on ATMs, gas pumps, or card machines to steal cardholders’ information and encode it onto another magnetic strip card for illicit withdrawals or purchases. It is estimated that skimming results in annual losses exceeding $1 billion for financial institutions and consumers nationwide.
In recent years, there has been a significant rise in EBT fraud cases across the United States. Criminals often exploit the monthly deposit schedule of government welfare funds to fraudulently withdraw, leaving vulnerable groups’ funds for basic living expenses depleted.
The Secret Service advises individuals to take self-protective measures:
– Inspect ATMs and card machines before use; if you notice any looseness, tilting, scratches, or abnormalities, do not use them.
– Use contactless payments (tap-to-pay) or chip cards whenever possible.
– When using card payments at gas stations, it is best to choose the “credit card” mode to avoid entering a PIN; if a PIN is required, shield the keypad with your hand to prevent hidden pinhole camera surveillance.
– Prefer using well-lit indoor ATMs and avoid easily swiping cards in crowded areas or tourist spots, as these locations are often targeted by criminals.
The Secret Service emphasizes that the collaborative multi-agency operational model will continue to be extended to other high-risk EBT fraud areas across America in the future to ensure the financial security of vulnerable families and consumers.