New York Field Office Anti-Skimming, EBT Fraud Operation Saves $68 Million

New York - The U.S. Secret Service, working with local and federal partners, prevented an estimated $67.8 million in losses to New York consumers as part of a three-day outreach operation targeting illegal payment card skimming and Electronic Benefit Transfer fraud.

During the operation, which took place from October 7-9, law enforcement personnel visited 943 New York businesses, checking for and removing illegal skimming devices from ATMs, gas pumps and point-of-sale terminals. Teams of Secret Service personnel, partnering with local and federal agencies, inspected 4,086 point-of-sale terminals and seized 65 skimming devices.

"The amount of fraud targeting innocent victims uncovered during this operation is staggering. This operation is a message to criminals who look to profit from vulnerable communities and unsuspecting consumers that we are onto you, we will remain vigilant until we stop you, and you will be held accountable for your crimes," Special Agent in Charge Matt McCool, of the U.S. Secret Service - New York Field Office, said. "Electronic Benefit Transfer fraud often hurts victims who can least afford it and who rely on these funds to pay for groceries to feed their families. The Secret Service is committed to pursuing these scammers and safeguarding the nation's financial system in the process."

The number of skimming devices the Secret Service and its partners seized this week surpasses the previous record set earlier this year. During a similar operation in May, inspectors found 55 skimmers. The outreach operation was conducted alongside the New York City Police Department, Homeland Security Investigations, the New York City Human Resources Administration, the New York City Department of Investigation and the Kings County District Attorney's Office.

In addition to checking for skimmers, law enforcement personnel 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.

The model for this multi-jurisdictional operation has been used in 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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