Rise in Skimming Scams Targets Americans’ Bank and Benefits Cards

Skimming devices are increasingly used to steal account details and PINs from bank and government benefits cards across the United States. These devices can be quickly installed on card readers and ATMs, capturing data whenever a card is swiped.

The U.S. Secret Service, responsible for investigating financial crimes, reports a surge in such fraudulent activities. In a recent operation in Los Angeles, CBS News joined Secret Service agents as they searched for skimmers at various retail locations.

Uncovering the Extent of the Scam

Once a skimming device is placed on a terminal, it transmits stolen data to scammers using a hidden wireless transmitter. Vince Porter, a Secret Service analyst, states that a single skimmer can result in thefts up to $1 million.

Detecting these devices is challenging, and even after removal, identifying how long they were in use is difficult. In 2025, over 400 skimmers were seized, though this is only a small portion of the devices in circulation. There are currently 32 active federal investigations across 15 states into skimming activities.

Financial Impact and Criminal Networks

The growing prevalence of skimmers leads to financial losses surpassing $1 billion annually for banks and consumers. Michael Peck from the Secret Service’s criminal investigative division highlights that organized criminal groups, mainly from Eastern Europe, Asia, and Central and South America, are behind these scams.

These groups enter the U.S. through various routes, including crossing the U.S.-Mexico border or even using unconventional methods like Jet Skis from Canada.

Targeting Vulnerable Government Assistance Cards

Criminals often target stores accepting EBT cards, as these contain funds from federal and state welfare programs. With most requiring a swipe rather than a chip or tap-and-pay feature, they lack necessary security measures.

A quote from Porter emphasizes the severity: “It’s a one-stop crime.”

Victims face considerable challenges in recovering stolen benefits. Mary Bowen, a mother relying on assistance, shared her struggle after her benefits were wiped out, leaving her unable to afford basic needs like rent and groceries.

Efforts to Prevent Ongoing Fraud

In a California operation, law enforcement inspected 1,749 devices across 328 businesses, seizing 16 skimmers and preventing an estimated $16.6 million in fraud. Such operations are being conducted in many U.S. cities.

Scams are prevalent in both large cities like Los Angeles and smaller towns. To minimize risk, individuals are advised to avoid swiping cards when possible. For those with the option, using tap-and-pay is deemed the most secure method by Pech.

Continued vigilance is necessary to combat skimming fraud, and individuals are encouraged to stay informed and take proactive steps in protecting their financial information.