CONSUMERS have been warned about a sneaky device stealing personal details at select grocery stores.
Placed by scammers and fraudsters, it quietly collections bank account information as they check out and pay.
Scammers could be stealing bank account details at self-checkout (stock image)[/caption]
In a process known as skimming, shoppers swipe their credit or debit cards as usual near the point-of-sale terminal, but hidden by the criminals is a small item that quickly captures and later drains funds.
The most targeted group is low-income families, particularly those who have EBT cards from the Supplemental Nutrition Assistance Program (SNAP).
This month, the Secret Service worked with the United States Department of Agriculture (USDA), state, and local law enforcement in Tennessee and Mississippi to create a coordinated operation that located and removed the hidden devices draining funds from Americans in need, per NewsNation.
Agents in 12 teams went to over 400 businesses in each state, inspecting 2,200 point-of-sale terminals, 857 gas station pumps, and 234 ATMs.
A total of four skimming devices were found.
Mark Switzer, a special agent out of the Memphis field office, explained in a briefing that the devices are becoming exceedingly sophisticated and difficult to spot.
“These things get placed right on top of the point-of-sale terminal,” he said.
Sometimes, they’re even hidden under keypads.
So, as each button is pushed by an unsuspecting consumer, another is also being pushed underneath to expose the information.
At a popular grocery store on the northern side of Memphis, a team found a keypad and reader taped to the bottom of a real one.
After removing all the devices, agents work to track down who placed it there and how long it’s been stealing information.
Except, even just removing it is impactful.
“It’s estimated that every skimmer that is recovered is about $1 million worth of fraud that we prevent,” Switzer noted.
So, considering the four located and removed in July, that’s about $4 million worth of fraud prevention.
FBI Tips to Protect Against Skimming
- Use tap-to-pay chips whenever possible
- Download ebtEDGE mobile application
- Update card PINs regularly
- Monitor account activity closely for suspicious transactions
- Report any unauthorized transactions immediately
More details available here.
ORGANIZED CRIME
He also said that this is a developed scheme, with criminals working in groups internationally to drain accounts.
Other times, they sell the collected data on the dark web.
“There’s a number of levels of criminals that are out there getting a hold of this information and then using it for their own purposes, whether that be for personal gain or whether that be to finance some type of other criminal activity,” he explained.
Similar operations as to one helmed by Switzer and Secret Service members are ongoing nationwide and have stopped around $200 million in theft thus far.
COMBAT WITH A CHIP
The top way to combat the skimmers is by having a card with a chip reader that can be used to tap and pay, according to Switzer.
Many EBT cards remain vulnerable because they have outdated technology — only the magnetic stripe.
The USDA said its working to put chips on EBT cards as an “important step to ensure that SNAP benefits are protected,” but states must make the final decision.
As of now, only a few offer chipped EBT cards.
Congress had also previously approved the replacement of stolen benefits in 2022, but that ended in December of last year.
States can also choose to reimburse SNAP beneficiaries that are affected, but Tennessee hasn’t yet done that.
Shoppers were also urged to check their bank accounts recently after a nearly “invisible” card-skimming device was found at Piggly Wiggly.
A woman also lost $500 at a checkout kiosk in May in just minutes.
