U.S. Secret Service investigates nationwide EBT card skimming scams

The U.S. Secret Service is investigating a nationwide card skimming scam that is specifically targeting Electronic Benefit Transfer (EBT) cards. During a recent sweep of retailers in Los Angeles, agents discovered highly sophisticated skimming devices designed to blend in with legitimate payment terminals, some even featuring fake security holograms.

These devices can be installed in less than two seconds and are equipped with miniature electronics and wireless transmitters that send stolen account information and PINs to criminals remotely. Because many EBT cards still rely on magnetic-stripe technology, they remain particularly vulnerable to these exploits.

The financial impact is significant, with the Secret Service estimating that a single skimmer can generate up to $1 million in stolen funds. Currently, there are 32 active federal investigations spanning 15 states.