Secret Service Boston EBT Fraud, Card Skimming Operation Prevents Estimated Loss of $16.7 Million

BOSTON - The U.S. Secret Service, along with local and state law enforcement partners from throughout the Boston area, concluded a three-day outreach operation aimed at combatting illegal payment card skimming and Electronic Benefit Transfer fraud.

Law enforcement personnel between Sept. 23-25 visited 700 businesses throughout the greater Boston area checking for and removing illegal skimming devices from ATMs, gas pumps and point-of-sale terminals. Twelve teams of Secret Service analysts, partnered with local and state agencies, recovered 16 illegal skimming devices during the operation preventing an estimated potential loss to the government of $16.7 million. The recovered skimmers saved a total from all operations of more than $334 million in fraud loss.

They also distributed educational materials about Electronic Benefit Transfer fraud and skimming to businesses to help them better identify the warning signs of illegal skimming devices in their point-of-sale terminals, gas pumps and ATMs.

This outreach operation was conducted by the U.S. Secret Service, along with the Massachusetts State Police, Boston Police Department, Cambridge Police Department, Concord Police Department, Everett Police Department, Harvard University Police Department, Lynn Police Department, Malden Police Department, Topsfield Police Department, Westwood Police Department and Worcester Police Department. Personnel from Homeland Security Investigations and the U.S. Department of Agriculture - Food and Nutrition Service also took part in the operation.

"The U.S. Secret Service - Boston Field Office, along with our federal, state and local law enforcement partners, are steadfast in our commitment to safeguarding the nation's financial infrastructure and protecting our communities from fraudsters," said Special Agent in Charge Randy Maloney, of the Boston Field Office. "This proactive operation, and those like it around the country, highlights the level of cooperation needed to combat the criminal enterprises that perpetrate these callous acts."

The multi-jurisdictional operation may be used as a model for other areas around the country where EBT fraud and skimming is prevalent.

Criminals often steal EBT and other payment card numbers by installing illegal skimming devices on ATMs, gas pumps and merchant point-of-sale terminals. Scammers use skimming technology to capture card information from EBT cards and encode that data onto another card with a magnetic strip. It is estimated that skimming costs financial institutions and consumers more than $1 billion each year.

Law enforcement agencies have seen a nationwide increase in skimming particularly targeting EBT cards. EBT fraud targets the nation's most vulnerable communities. Each month, money is deposited into government assistance accounts intended to help families pay for food and other basic items. This enables criminals who steal card information to time their fraudulent withdrawals and purchases around the monthly deposits.

There are several precautions consumers can take to protect themselves:
• Inspect ATMs, point-of-sale terminals and other card readers. Look for anything loose, crooked, damaged, or scratched. Do not use a card reader if anything appears unusual.
• Whenever possible, use tap-to-pay technology or use debit and credit cards with chip technology.
• If using a debit card at a gas station, run it as a credit card to avoid entering a PIN number. If that is not an option, consumers should use their hand to hide their PIN to block scammers who may be using tiny pinhole cameras above the keypad area to record entries. Use ATMs in a well-lit, indoor location, which are less vulnerable targets.
• Be alert for skimming devices in tourist areas, which are popular targets.

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