Officials with the U.S. Secret Service said on Tuesday a three-day targeted outreach operation prevented an estimated $67.8 million in losses due to illegal payment card skimming and Electronic Benefit Transfer fraud.
The agency said during Oct. 7-9, law enforcement personnel visited 943 New York businesses to check for and remove illegal skimming devices from ATMs, gas pumps and point-of-sale terminals. Secret Service personnel, partnering with local and federal agencies, inspected more than 4,000 terminals and seized 65 skimming devices.
“The amount of fraud targeting innocent victims uncovered during this operation is staggering. This operation is a message to criminals who look to profit from vulnerable communities and unsuspecting consumers that we are onto you, we will remain vigilant until we stop you, and you will be held accountable for your crimes,” Special Agent in Charge Matt McCool, of the U.S. Secret Service – New York Field Office, said.
“Electronic Benefit Transfer fraud often hurts victims who can least afford it and who rely on these funds to pay for groceries to feed their families. The Secret Service is committed to pursuing these scammers and safeguarding the nation’s financial system in the process,” McCool added.
The number of devices seized surpasses the previous record set earlier this year. In that operation, inspectors found 55 skimmers.
Law enforcement personnel also distributed educational material about EBT fraud and skimming to businesses. Officials said criminals often steal EBT and other payment card numbers by installing illegal skimming devices on ATMs, gas pumps and POS terminals. The criminals then use the technology to capture card information and encode that data onto another card with a magnetic strip. Law enforcement officials said skimming costs more than $1 billion a year.