WASHINGTON – The U.S. Secret Service, Fairfax, Montgomery, Prince George’s, Prince William, and Arlington County Police Departments, and the D.C. Metropolitan Police Department conducted a payment card skimming and Electronic Benefit Transfer fraud outreach operation in various cities throughout the National Capitol Region on Jan. 29-30.
Technical investigative personnel from the U.S. Secret Service joined local law enforcement officers and visited 879 businesses to check for and remove illegal skimming devices from ATMs, gas pumps and point-of-sale terminals and distributed educational materials about Electronic Benefit Transfer fraud and skimming to businesses to help them better identify the warning signs of illegal skimming devices. In total, 27 skimming devices were recovered during the operation preventing an estimated potential loss of $7.2 million. Overall, 6,561 point-of-sale terminals, gas pumps and ATMs were inspected.
“An important part of this operation was educating store personnel about how they can spot and remove credit card skimmers to prevent criminals from gaining access to customer financial data,” Special Agent in Charge of the United States Secret Service Washington Field Office Matt McCool said. “The technology is always changing so it’s hard for businesses to keep pace, and criminals count on that. Conducting these operations with our local partners helps us empower businesses to prevent fraud and protect consumers.”
Criminals steal EBT and other payment card numbers by installing illegal skimming devices on ATMs, gas pumps, and merchant point-of-sale terminals.
Criminals use skimming to capture card information from EBT cards and then encode that data onto another card with a magnetic strip, such as a hotel key. It is estimated that EBT skimming costs financial institutions and consumers more than $1 billion each year. Each skimmer found and removed prevents around $300,000 in fraud loss.
This operation is part of a nationwide series conducted by the U.S. Secret Service and local law enforcement partners where EBT fraud and skimming is prevalent. To protect vulnerable communities, the U.S. Secret Service utilizes subject matter experts from investigative analytical and technical positions, supplemented by law enforcement task force officers, to mitigate loss to the US Government and persons in need. Conducting investigative operations, like Operation Potomac, allows the investigative mission of this agency to remain consistent while allowing Special Agents to remain engaged in protective operations.
Law enforcement agencies have seen a continual rise in skimming in recent years, particularly targeting EBT cards. Each month, money is deposited into government assistance accounts intended to help families pay for food and other basic items. This enables criminals who steal card information to time their fraudulent withdrawals and purchases around the monthly deposits.
There are several precautions consumers can take to protect themselves.
- Inspect ATMs, point-of-sale terminals, and other card readers before using. Look for anything loose, crooked, damaged, or scratched. Don't use a card reader if you notice anything unusual. Use tap to pay when possible. Use ATMs in a well-lit, indoor location, which are less vulnerable targets.
- If you use a debit card at a gas station, run it as a credit card instead of entering a PIN. That way, the PIN is safe, and the money isn’t deducted immediately from your account. If that’s not an option, cover your hand when entering your PIN. Scammers sometimes use tiny pinhole cameras, situated above the keypad area, to record PIN entries. Use ATMs in a well-lit, indoor location, which are less vulnerable targets.
- Be alert for skimming devices in tourist areas, which are popular targets.
- Use debit and credit cards with chip technology. In the U.S., there are fewer devices that steal chip data versus magnetic strip data.
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