A nationwide surge in card skimming scams is compromising Electronic Benefit Transfer (EBT) cards, potentially draining vital food assistance funds from vulnerable individuals, according to U.S. Secret Service alerts.

These sophisticated devices, often hidden in plain sight on payment terminals, can copy card information and personal identification numbers (PINs) in seconds. The U.S. Secret Service recently conducted sweeps in Los Angeles, uncovering numerous devices that blend seamlessly with legitimate payment terminals, some even featuring apparent security holograms.

One unsettling aspect highlighted by investigators is the speed at which criminals install these skimmers. Surveillance footage has captured suspects attaching devices in under two seconds. Once installed, these fake readers capture magnetic stripe data as a card is swiped. The stolen information can then be transmitted wirelessly to criminals nearby, eliminating the need for them to physically retrieve the device.

Staggering Financial Impact and EBT Card Vulnerability

This type of fraud carries significant financial implications, with the Secret Service estimating that a single skimmer can generate up to $1 million in stolen funds. Across the country, 32 active federal investigations span 15 states, and the agency estimates that skimming collectively costs consumers and financial institutions over $1 billion annually. In 2025 operations alone, law enforcement removed more than 400 illegal skimming devices.

Criminals are specifically targeting locations with high EBT usage, such as grocery stores where individuals use government benefits. While many credit and debit cards now utilize more secure chip or contactless technology, a significant number of EBT transactions still rely on magnetic stripes, making them susceptible to skimming. Criminals clone the stolen magnetic stripe data onto other cards and, if they also obtain the PIN, can drain benefit accounts.

The impact on EBT cardholders can be immediate and devastating, leaving families without funds for essential needs. The U.S. Department of Agriculture's Food and Nutrition Service acknowledges the rise in EBT fraud and is working with states to modernize SNAP EBT systems, including the introduction of chip cards. However, this transition takes time, leaving many benefit recipients using older, more vulnerable card technology.

Organized crime groups are reportedly involved in some of these operations, with investigators linking certain schemes to groups that travel across the U.S., installing devices in multiple locations rapidly.

Protecting Consumers from Skimmers

While well-made skimmers can be difficult to detect visually, consumers can take steps to mitigate risk:

  • Utilize contactless payments: Whenever possible, opt for tap-to-pay or mobile payment options instead of swiping cards.
  • Inspect payment terminals: Before use, examine card readers for any signs of tampering, looseness, damage, or parts that do not align correctly.
  • Shield the keypad: Always cover the keypad with your hand when entering your PIN to prevent it from being recorded.
  • Enable transaction alerts: Set up immediate notifications from your bank or card issuer for all card usage and promptly report any unrecognized transactions.
  • Monitor EBT accounts: EBT users should regularly check their account history for unauthorized activity, change their PINs frequently, and contact their state EBT agency immediately if fraud is suspected.

Individuals who suspect their card information has been compromised are urged to act quickly by contacting their card issuer to block the card and dispute unauthorized transactions. For EBT cards, victims should also contact their state's EBT agency and change their PIN immediately. Providing the last known location where the card was used can assist investigators.