Secret Service uncovers sophisticated card skimmers targeting EBT benefits across U.S.

During a recent sweep of Los Angeles retailers, U.S. Secret Service agents discovered 16 sophisticated skimming overlays that sit directly on payment terminals and capture both card numbers and PINs. The devices can be installed in under two seconds and often include counterfeit security holograms, making them hard to spot. Officials warn that a lone skimmer may yield as much as $1 million in stolen funds, contributing to an industry-wide loss of more than $1 billion each year.

Investigators note that organized crime groups are behind many schemes, moving quickly between locations to install the devices. The fraud disproportionately affects users of Electronic Benefit Transfer cards, which still rely on magnetic-stripe technology vulnerable to cloning. Federal agencies are urging a shift to chip-enabled EBT cards, but the transition will take time. Consumers are advised to use contactless payments, inspect terminals, shield PIN entry, and monitor account activity closely.