Hidden Skimmers Steal Millions From Benefit Cards

U.S. Secret Service agents recently conducted sweeps across Los Angeles, uncovering sophisticated devices designed to skim payment card information. These skimmers are designed to be nearly undetectable, some even mimicking security holograms, and can be installed in mere seconds. They capture both account data and PINs, posing a significant threat to consumers.

This criminal activity is particularly impacting individuals relying on Electronic Benefit Transfer (EBT) cards. Many EBT cards still utilize magnetic stripes, a technology that criminals are adept at exploiting. A single compromised skimmer can reportedly generate up to $1 million in stolen funds. Nationwide, 32 active federal investigations are underway across 15 states.

Authorities estimate that skimming costs consumers and financial institutions over $1 billion annually. In response, the Secret Service has increased enforcement efforts, removing over 400 illegal skimming devices during operations in 2025. The agency notes a growing trend of EBT cards being targeted specifically.

To combat this, federal officials are working to modernize EBT systems by transitioning to more secure chip card technology. However, this transition takes time, leaving many benefit recipients susceptible. Organized crime groups are believed to be behind some of these operations, moving between locations to install devices rapidly.

Consumers can protect themselves by using contactless payments when available, inspecting terminals for signs of tampering, performing a gentle pull test on readers, and always covering the keypad when entering a PIN. Turning on transaction alerts and regularly checking EBT account balances are also crucial steps. If a skimmer is suspected, individuals should immediately contact their card issuer, block the card, and change their PIN.