Twenty-two illegal skimming devices were removed from businesses in Baltimore during an operation by the U.S. Secret Service (USSS).
On October 22 and 23, the USSS visited 493 businesses alongside local law enforcement. They inspected over 3,000 point of sale terminals, gas pumps and ATMs, officials said.
The operation was part of a series of similar efforts across the county that prevented an estimated loss of nearly $22.9 million, according to the U.S. Secret Service.
"The U.S. Secret Service, and our law enforcement and state agency partners, remain committed to combating EBT fraud and payment card skimming in Maryland and throughout the country," said Brian McDonough, Special Agent in Charge of the U.S. Secret Service's Baltimore Field Office. "This proactive approach allows us to identify and remove skimming devices that target our nation's most vulnerable populations. I'm proud of the great work of our personnel and our partners during this operation."
What is card skimming?
Card skimming occurs when criminals install hidden devices onto ATMS, gas pumps, and other point-of-sale terminals to steal card data and PIN entries.
Using the information, scammers can then create fake payment cards and make unauthorized purchases or steal money from bank accounts, according to the FBI.
Scammers can also use the skimmers to steal information from EBT cards and encode that data onto another card with a magnetic strip, according to the USSS.
In August of 2022, a card skimmer was found at a 7-Eleven convenience store in Glen Burnie.
Later that year, deputies found skimming devices at two separate point-of-sale terminals and one at a bank ATM in Harford County.
According to the FBI, skimming costs financial institutions and consumers more than $1 billion annually.
How to identify card skimmers
Skimming devices are designed to look like part of a card reader and can often be found in tourist areas, according to USSS officials.
Users are advised to inspect ATMs, point-of-sale terminals, and other card readers by looking for alignment issues or anything that makes the card reader stick out at an odd angle.
The USSS advises citizens to look for anything loose, crooked, damaged, or scratched and to not use a card reader if anything seems unusual.
According to authorities, other giveaway details include:
If the device feels wiggly or detachable
If the backlight for the keys isn't visible or if they are faint
If the keys have an unusual thickness to them
Keys that feel sticky or spongy when they are pressed
A wider space below the keys or wider borders overall on the machine
Authorities recommend using tap-to-pay or chip technology instead of inserting a debit or credit card into a card reader.
When using a debit card at a gas station, officials suggest running it as a credit card to avoid entering a PIN.
Also:
Secret Service operation finds multiple card skimming devices in the Mid-South
It’s video you’ll only see on Your News Leader. Law enforcement agents uncovered an unsuspecting device used to steal your credit card information at a North Memphis grocery store.
The discovery was part of a secret service operation that took place this week to combat a crime targeting lower-income families.
For the last two years, WREG Investigators have told you about the drastic rise in a ruthless crime. Criminals use devices to illegally capture EBT card information. They often duplicate the card and drain SNAP benefits within minutes of being deposited into a person’s account.
It’s a tactic known as skimming.
This week, the U.S. Secret Service gathered federal, state, and local partners for a highly coordinated operation to combat it.
“We couldn’t do this without you. We do not have the manpower to go out and check the numbers that we have,” Mark Switzer, special agent in charge of the Memphis field office, said in a morning briefing Tuesday.
The goal was to find the illegal skimming devices while also educating businesses on what to look for. Twelve teams saturated West Tennessee and North Mississippi on Tuesday and Wednesday, and WREG Investigators got an exclusive look.
“With a partnership with the USDA, we’ve identified a number of point-of-sale terminals for EBT cards and some potential points of compromise,” Switzer said.
We went out with one of the teams as they went from business to business inspecting ATMs, gas pumps, and point-of-sale terminals for skimming devices.
“These things get placed right on top of the point-of-sale terminal,” Switzer said.
They look like the real deal. They capture the data as each button is pushed while also pushing the real buttons underneath.
Switzer said the systems are becoming more sophisticated. Sometimes the criminals work in groups overseas. Other times, they gather the data and sell it on the dark web.
“There’s a number of levels of criminals that are out there getting a hold of this information and then using it for their own purposes, whether that be for personal gain or whether that be to finance some type of other criminal activity,” Switzer said.
Agents pried off the skimming device they found at the grocery store in North Memphis. It unveiled a keypad and reader attached by double-sided tape stuck to the real one.
It was marked as evidence. Agents will now work to find out who installed it and how long it’s been there.
“It’s estimated that every skimmer that is recovered is about $1 million worth of fraud that we prevent,” Switzer said.
Agents went to more than 400 businesses. They inspected 2,200 point-of-sale terminals, 857 gas pumps, and 234 ATMs. Four skimming devices were found.
Based on that number, it’s estimated this operation prevented around $4 million worth of fraud. These operations have been taking place across the country and are believed to have stopped more than $200 million in theft.
Switzer said chip readers on EBT cards would also help combat the fraud.
“The ability exists to be able to skim cards with chip readers, but it’s very few and far between,” he said.
In Tennessee, EBT cards don’t have embedded microchips like you have on your bank card. They use a magnetic stripe, which is an older technology, making it much easier to compromise.
The USDA admits chip cards are “an important step to ensure that SNAP benefits are protected,” but it’s up to the state to take that step.
Only a handful of states have or will soon offer EBT cards with chips. The Tennessee Department of Human Services stated it’s “exploring all available options to ensure effective fraud mitigation and protection for customers.”
“We live paycheck to paycheck,” Katherine Jones said in a recent interview.
The grandmother is an authorized representative on her daughter’s account. Thieves compromised her card and drained the family’s SNAP benefits in April and in May.
“It’s just frustrating that, you know, people can so easily access your information and use it without a care in the world,” she said.
Switzer said that’s why this work is vital.
“While they lose, there’s the potential that taxpayers lose as well,” he said. “Their taxes are going to help offset some of this.”
In 2022, U.S. Congress approved replacing stolen benefits, but that came to an end in December.
States can choose to replace the benefits, but Tennessee hasn’t opted in.
How to protect your card and spot skimming devices?
How the FBI says you can protect yourself against skimming.
TDHS advises customers to take proactive security measures by using ebtEDGE to protect their benefits, including:
Utilization of card-freezing features
Regular PIN updates
Monitoring account activity for suspicious transactions
Reporting unauthorized transactions immediately to mitigate further losses
The ebtEDGE mobile app allows customers to log-in securely using touch ID or facial recognition instead of entering a user ID and password. The ebtEdge mobile app is available from the Apple App Store for iPhone and the Google Play Store for Android devices.