How the Secret Service is cracking down on card-skimming scams

The U.S. Secret Service has intensified its efforts to combat the rising threat of card-skimming scams, a form of cybercrime that has cost American consumers over $1 billion annually. In a recent operation conducted in Los Angeles, agents identified and removed multiple illicit devices designed to steal sensitive financial information from bank and government benefits cards. These devices, often disguised as legitimate card readers, are capable of capturing account details and personal identification numbers within seconds. According to the Secret Service, the removal of such devices represents only a small portion of the total number currently in circulation across the United States. During a joint operation with local law enforcement, Secret Service agents inspected hundreds of retail locations throughout Los Angeles, searching for skimming devices that could compromise consumer data. These devices, once installed on card terminals or ATMs, collect data every time a card is swiped. Some models include wireless transmitters that send the stolen information directly to criminals. Vince Porter, a Secret Service analyst, noted that a single skimmer can generate up to $1 million in fraudulent transactions before being discovered. The Secret Service confirmed that in 2025 alone, more than 400 illegal skimming devices were removed from public spaces. However, the agency emphasized that this number reflects only a fraction of the actual devices in use. A CBS News investigation revealed that there are currently 32 active federal investigations into skimming activities across 15 different states. The frequency of these crimes has increased significantly in the past two years, leading to higher financial losses for both individuals and financial institutions. According to Special Agent Michael Peck, head of the Secret Service’s criminal investigative division, organized crime syndromes based in countries such as Eastern Europe, Asia, and parts of Latin America are primarily responsible for these scams. Many of these groups enter the United States through the southern border, with some arriving via unconventional means, such as using a Jet Ski from Canada. These criminals specifically target businesses that accept electronic benefit transfer (EBT) cards, which provide access to government assistance programs like food stamps and housing subsidies. These EBT cards, unlike traditional credit or debit cards, often lack advanced security features such as chip technology or contactless payment options. This makes them particularly vulnerable to skimming attacks. Stores that publicly advertise their ability to accept EBT cards frequently become targets for criminals seeking easy access to large sums of public funds. Once the information is stolen, recovering the lost benefits proves difficult due to the complex nature of the distribution process involving multiple government agencies. Victims of these scams face severe consequences, often finding themselves unable to meet basic living expenses. Mary Bowen, a mother of six who relies heavily on government assistance, described how her benefits were suddenly stolen, leaving her unable to afford rent or groceries. “It just disappeared,” she said. “I’ve had to rely on my friends for food because they took everything.” Her story highlights the devastating impact these crimes can have on low-income families who depend on government support. As part of the ongoing crackdown, law enforcement teams visited 328 businesses in California, inspecting a total of 1,749 devices. During this operation, 16 skimming devices were confiscated, potentially preventing approximately $16.6 million in fraudulent activity. Similar operations are expected to continue across the nation as authorities work to dismantle networks responsible for these crimes. The Secret Service continues to collaborate with local police departments and other federal agencies to identify new threats and develop strategies to protect consumers from falling victim to card-skimming schemes.