A nationwide scam involving sophisticated skimming devices is targeting Electronic Benefit Transfer (EBT) cards, stealing essential food benefits from vulnerable individuals. U.S. Secret Service agents have been conducting sweeps across hundreds of retailers in multiple states, uncovering devices designed to steal card information and personal identification numbers (PINs).

These skimming devices are often disguised to blend in with legitimate payment terminals, sometimes even appearing to have security holograms. Criminals can install these devices in a matter of seconds. Once in place, they capture account information when a card is swiped. Some devices are equipped with wireless transmitters, allowing criminals to collect stolen data remotely without needing to retrieve the skimmer itself.

Widespread Impact and Growing Threat

The U.S. Secret Service estimates that skimming costs consumers and financial institutions over $1 billion annually. As of recent operations, federal investigations into skimming activity span 15 states, with law enforcement removing more than 400 illegal devices in 2026 alone. The agency notes a significant increase in skimming activity targeting EBT cards.

A recent sweep in Los Angeles inspected 1,749 payment devices across 328 businesses, resulting in the seizure of 16 skimmers. These removals were estimated to have prevented approximately $16.6 million in potential fraud losses.

Criminals are specifically targeting locations where EBT cards are frequently used, such as grocery stores. Many EBT transactions still rely on magnetic-stripe technology, which is vulnerable to skimming. Skimmers capture the data from the magnetic stripe, which criminals can then use to create cloned cards. If the associated PIN is also compromised, these cloned cards can be used to drain benefit accounts.

Modernization Efforts Underway

Federal officials acknowledge the vulnerability of magnetic stripes. The U.S. Department of Agriculture’s Food and Nutrition Service is collaborating with states to modernize SNAP EBT systems, including the introduction of chip-enabled cards. Chip technology is significantly more difficult to copy than magnetic stripe data. However, the transition process takes time, leaving many benefit recipients reliant on older, less secure payment methods.

Organized crime groups are believed to be involved in some of these skimming operations, with some groups traveling across state lines to install devices at multiple locations. Coordinated efforts can make these devices harder to track and allow criminals to target numerous retailers within a short period.

Protecting Consumers

While sophisticated skimmers can be difficult to detect visually, consumers can take steps to reduce their risk:

  • Utilize contactless payment: Whenever possible, opt for tap-to-pay or digital wallets instead of swiping cards.
  • Inspect payment terminals: Before using a terminal, check for any signs of tampering, such as loose parts, damage, or crooked alignment.
  • Test the reader: Gently pull on the card reader to see if it feels loose or moves unexpectedly.
  • Shield the keypad: Cover the keypad with your hand when entering your PIN to prevent it from being recorded.
  • Enable transaction alerts: Set up alerts with your bank or card issuer to be notified of card activity.
  • Regularly check EBT balances: EBT users should review their account history for unrecognized transactions and change their PINs regularly, especially before benefits are issued.
  • Never share EBT PINs: Government agencies do not require EBT card numbers or PINs for verification.

Individuals who suspect their card information has been compromised should immediately contact the card-issuing bank or agency, block the compromised card, and change their PIN. Reporting suspicious transactions promptly can aid investigators in locating compromised terminals and preventing further fraud.