You swipe your card at the checkout, grab your receipt and walk away. Nothing looks unusual. However, a device sitting right on top of that payment terminal may have copied your card information and PIN.
U.S. Secret Service agents recently swept hundreds of retailers across Los Angeles looking for skimmers. What they found shows how sophisticated these devices have become and how difficult they can be to spot.
This card skimming scam is especially serious for people who rely on Electronic Benefit Transfer, or EBT, cards. Many of those cards still depend on magnetic-stripe technology that criminals know how to exploit.
Secret Service finds skimmers hiding in plain sight
One of the most unsettling parts of the investigation is how quickly criminals can install a skimmer. Surveillance video from the investigation captured a suspect placing one over a payment terminal in less than two seconds. From there, the fake reader sits directly over the real terminal. When someone swipes a card, the device can capture account information and the PIN used during the transaction.
We have previously shown you how skimmers and shimmers can steal your payment information. What stands out now is how convincing these newer devices can look. During the Secret Service sweep, agents found a skimmer that blended closely into the legitimate payment terminal. It even had what appeared to be a security hologram.
Agents had to pry the device off. Inside, they found miniature electronics and a wireless transmitter. That transmitter can send stolen information to a criminal nearby. The person who installed the skimmer may not have to return and remove it to collect the data.
A single skimmer could lead to huge losses
The numbers behind this crime are staggering. The Secret Service says a single skimmer can generate as much as $1 million in stolen funds.
Across the country, 32 active federal investigations span 15 states. Meanwhile, the Secret Service estimates that skimming costs consumers and financial institutions more than $1 billion each year.
The agency has also stepped up its nationwide enforcement efforts. During 2025 operations, law enforcement removed more than 400 illegal skimming devices. The Secret Service says skimming activity has increasingly targeted EBT cards.
A recent Los Angeles sweep shows how widespread the problem has become. Law enforcement visited 328 businesses and inspected 1,749 payment devices. Agents seized 16 skimmers. The Secret Service estimated those removals prevented about $16.6 million in potential fraud losses.
Why criminals are targeting EBT cards
This is where things take a troubling turn. The Secret Service says criminals intentionally target locations with heavy EBT use. That includes stores where people use government benefits to buy groceries.
Many credit and debit cards now offer chips or contactless payment. However, many EBT transactions still require a magnetic-stripe swipe. That gives criminals an opening. A skimmer can capture the information stored on the magnetic stripe. Criminals can then copy that information onto another magnetic-stripe card. If they also capture the victim’s PIN, they can use the cloned card to steal benefits.
For people who rely on those benefits, the impact can be immediate. Victims may discover their accounts have been drained when they try to buy groceries or pay for everyday necessities. Recovering stolen benefits can also take time, leaving families without money they were counting on.
Why EBT card security is changing
Federal officials know the magnetic stripe is a weak point. The U.S. Department of Agriculture’s Food and Nutrition Service says EBT fraud involving skimming is rising. The agency is working with states on modernizing SNAP EBT systems, including introducing chip cards.
Chip technology makes card information harder to copy than data stored on a magnetic stripe. Still, that transition takes time. Until more EBT systems support newer payment technology, millions of people may continue using cards that require a swipe. That leaves benefit recipients with fewer ways to avoid the very payment method criminals are targeting.
Organized crime groups are behind some skimming operations
The Secret Service says organized criminal groups are involved in some of these skimming schemes. Investigators have linked some operations to groups that travel into the United States and move between locations installing devices.
The agency has been conducting skimming operations across the country throughout 2026. Recent sweeps have focused on payment terminals at stores and ATMs where skimming activity is suspected. That kind of coordinated activity can make the devices harder to track and allow criminals to target multiple locations in a short period of time.
How to protect yourself from card skimmers
You may never spot a well-made skimmer by sight alone. Still, you can lower your risk and catch suspicious activity faster.
1) Tap instead of swiping when you can
If a payment terminal supports contactless payments, use them. The Secret Service recommends tap-to-pay when possible. You can also use a digital wallet on your phone if the retailer supports it. For more ways to protect your cards in stores and online, see our guide on how to protect your credit and bank cards from getting hacked.
2) Inspect the payment terminal first
Take a few seconds before inserting or swiping your card. Look for a reader that appears loose or crooked. Also watch for damage, unusual gaps or parts that do not seem to line up correctly. The Secret Service recommends avoiding a reader if something looks altered or damaged.
3) Give the reader a gentle pull
Some overlay skimmers sit directly on top of the legitimate card reader. Before swiping, gently check whether anything feels loose or moves unexpectedly. Do not try to rip apart a terminal. If something seems suspicious, stop using it and notify the store.
4) Cover the keypad when entering your PIN
A skimmer may capture card information while another device records your PIN. Use your hand to shield the keypad whenever you enter a PIN. That simple habit can make captured card information less useful to a criminal.
5) Turn on transaction alerts
Enable alerts through your bank or card issuer so you know when your card gets used. Pay attention to small charges too. If you see something you do not recognize, contact your financial institution using the number on your card or its official app. If money has already disappeared from an account, follow our steps on what to do if your bank account is hacked.
6) Check your EBT balance regularly
EBT users should review their account history for transactions they do not recognize. The Food and Nutrition Service recommends checking EBT accounts regularly. It also advises changing your PIN at least once a month, particularly before your benefits are issued. If you spot an unauthorized transaction, change your PIN immediately and contact your state EBT agency.
7) Never share your EBT PIN
Government agencies should not need your PIN to verify your eligibility. Do not provide your EBT card number or PIN in response to an unexpected text, phone call or email. Federal officials warn that criminals use several methods to steal benefit information, so protecting the PIN remains important even when no physical skimmer is involved.
What to do if you think a skimmer stole your card information
Act quickly once you notice suspicious transactions.
- Contact the bank or organization that issued the card.
- Ask them to block the compromised card and review unauthorized transactions.
- If an EBT card is involved, contact the agency that manages benefits in your state.
- Change the card’s PIN immediately.
- Also write down where you last used the card. That information may help investigators or the retailer locate a compromised terminal.
- Do not assume one unauthorized charge will be the end of it. Criminals who successfully copy card information may try using it again.
Kurt’s key takeaways
What bothers me most about this scam is that criminals are going after people who may have the fewest options to protect themselves. If I can tap my credit card or pay with my phone, I can avoid swiping altogether. Many EBT users cannot make that same choice because their cards still rely on older magnetic-stripe technology. That needs to change. These skimmers have become convincing enough to fool almost anyone, and some can transmit stolen information without the criminal ever coming back for the device. You can check the reader and keep an eye on your account, but there is only so much you can do when the payment system itself leaves you exposed. Moving benefit cards to more secure technology should be a priority, especially when families are depending on that money for food.
Have you ever found a suspicious card reader or discovered money missing after using your card, and do you think stores should be required to inspect their payment terminals every day? Let us know by writing to us at CyberGuy.com
