Inside The Secret Service's Nationwide Crackdown On Card Skimming

In response to the continued rise of payment card skimming, the United States Secret Service conducted one of its most expansive enforcement efforts to date, launching a nationwide initiative aimed at identifying and removing illicit skimming devices before stolen data could be used for fraud.

What is Card Skimming and How Does it Work?

The Federal Bureau of Investigation (FBI) describes card skimming as the use of "devices illegally installed on or inside ATMs, point-of-sale (POS) terminals, or fuel pumps [to] capture card data and record cardholders' PIN entries." Skimmers may be inserted inside the card reader, placed over the point-of-sale terminal as an overlay, or concealed along internal wiring. Because many of these devices allow the compromised payment terminals to function normally, victims often have no idea that their information has been stolen.

Once obtained, the Secret Service notes that the stolen card data is encoded onto another magnetic-stripe card, enabling unauthorized purchases and withdrawals using the victim's account information. The FBI estimates that skimming costs U.S. consumers and financial institutions more than $1 billion annually.

EBT Fraud as a Primary Target

Electronic Benefits Transfer (EBT) cards have become a particular focus of skimming operations. Unlike most consumer credit cards, EBT cards generally lack chip technology, making them significantly easier for criminals to compromise. As of early 2024, the FBI reported that no state had implemented chip-enabled EBT cards.

The lack of robust security features and predictable monthly deposit schedules make EBT cards especially vulnerable. According to the FBI, scammers often withdraw EBT cash benefits shortly after funds are loaded, often between midnight and 6 a.m. the day the benefits become available. Low-income households that rely on these benefits are disproportionately affected, and reimbursement for lost funds is often limited.

Inside the Secret Service's 2025 Nationwide Crackdown

To address the escalating threat, the Secret Service partnered with federal, state and local law enforcement agencies to conduct a series of coordinated enforcement and outreach operations throughout 2025. According to the agency, the initiative resulted in:

• 22 operations conducted nationwide
• More than 9,000 businesses visited
• Nearly 60,000 ATMs, gas pumps, and point-of-sale terminals inspected
• 411 illegal skimming devices identified and dismantled
• An estimated $428.1 million in potential fraud losses prevented

Operations spanned major metropolitan areas as well as smaller cities, including: Los Angeles, New York City, Washington, D.C., Anchorage, Boston, Orlando, Charlotte, Buffalo, San Diego, San Antonio, Baltimore, Tampa, Atlanta, Savannah, Memphis, Miami and Pittsburgh. Several cities saw multiple rounds of inspections.

Rather than waiting for fraud reports to surface, this initiative relied on proactive, in-person inspections. Agents frequently uncovered skimming devices even when business owners believed their terminals were secure.

Investigators noted that skimmers can be installed in seconds, sometimes as a store clerk briefly turns their attention away from payment terminals. The FBI has warned that fraudsters may intentionally divert employees' attention, such as by requesting items from behind the counter. Much of this activity is linked to transnational criminal groups, and store employees are typically unaware that devices have been installed.

In addition to removing skimmers, agents also educated business owners on identifying signs of tampering. In some cases, scammers returned to reinstall devices within days, or even hours, of an inspection. Because of the outreach component, however, owners were able to detect and report the new devices quickly.

Consumer Protection: What to Watch For

Both the Secret Service and the FBI emphasize that basic vigilance can significantly reduce the risk of falling victim to a fraudulent skimming scheme. Recommended precautions include:

• Inspection of card readers for loose, crooked, damaged or scratched components
• Use tap-to-pay or chip-enabled cards whenever possible
• When using a debit card, run it as credit to avoid entering a PIN; if a PIN is required, shield the keypad
• Be especially alert in tourist areas with high transaction volume
• Prefer indoor, well-lit ATMs, which are less susceptible to tampering

What Comes Next?

The Secret Service made clear that its 2025 initiative represents the beginning of an expanded and ongoing effort. The agency plans to continue enforcement and outreach into 2026 and beyond, working with domestic law enforcement partners to dismantle the criminal networks enabling these schemes.

As Assistant Director of the U.S. Secret Service's Office of Field Operations, Kyo Dolan, noted, these actions are designed to remove skimmers "before criminals can recover the stolen card numbers they contain," while also targeting the organizations behind the schemes.

Although skimming fraud remains a pervasive threat, proactive and coordinated enforcement can meaningfully disrupt it. For consumers and businesses alike, awareness, vigilance and early detection remain the first line of defense.

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