Credit card skimmers are draining food benefits: Here's how to protect yourself

You swipe your card, grab your groceries, and head home. Nothing seems out of the ordinary, until you check your balance and realize your food benefits have vanished.

Across the country, a wave of credit card skimming is targeting Electronic Benefit Transfer (EBT) cards. By exploiting older technology and installing nearly undetectable devices at local bodegas and grocery stores, criminals are silently draining millions from families who rely on food assistance programs.

Why EBT cards?

What we know:

According to the U.S. Secret Service, skimming incidents at Point-of-Sale (POS) terminals and ATMs account for over $1 billion in losses annually.

Unlike most modern debit and credit cards that use secure EMV chip technology or tap-to-pay capabilities, many EBT cards still rely solely on vulnerable magnetic stripes. When you swipe a magnetic stripe, the data is unencrypted and easily copied.

Here is how the scam unfolds:

1. Criminals place a skimmer, a physical overlay designed to look identical to the real POS terminal, directly over the card reader and keypad. Surveillance video from a recent investigation in Los Angeles showed a suspect installing one in under two seconds.
2. When you swipe your EBT card, the skimmer copies the magnetic stripe data, and records your keystrokes as you type your PIN.
3. Newer, highly sophisticated skimmers contain tiny internal wireless transmitters, which send your card data and PIN instantly to a nearby thief. 
4. Scammers re-encode your stolen data onto a blank card with a magnetic stripe and drain your benefits. A single skimming device can generate up to $1 million in stolen funds.

Fighting back

Dig deeper:

The Secret Service has launched a nationwide crackdown on EBT fraud, targeting the hotspots where these devices are most commonly found.

In late June 2026, the Secret Service's New York Field Office, alongside local law enforcement, concluded a massive three-day sweep across Brooklyn, The Bronx, and Queens:

• 1,010 businesses visited and nearly 4,000 inspections conducted.
• 35 illegal skimming devices were pulled off the streets.
• $36.5 million in potential losses were prevented.

This follows a 2025 campaign where law enforcement removed over 400 illegal skimming devices nationwide, preventing more than $428 million in estimated fraud.

"Stealing credit card and EBT information from hardworking New Yorkers is not a victimless crime," warned Special Agent in Charge Matt McCool of the New York Field Office, noting that dense areas with small stores are a "target-rich environment" for these fraudsters.

How to protect your benefits

What you can do:

As scammers get better at hiding these devices, consumers must stay vigilant. The Secret Service recommends a few easy habits to protect your cards and your cash at the checkout line:

• Inspect the terminal: Before you swipe, look closely at the card reader. Are there any loose, crooked, damaged, or scratched edges?
• Do the "Wiggle Test": Gently pull up on the corners of the terminal or the keypad's privacy shield. Skimmers are often just plastic shells snapped over the real machine. If any part feels loose or bulky, do not use it and alert the merchant.
• Shield your PIN: Always use your free hand to cover the keypad when typing your PIN to block hidden pinhole cameras or overlay recorders from capturing your code.
• Run as credit (when possible): If you are using a standard bank debit card alongside your EBT card, try to run it as "credit" or use tap-to-pay/chip inserts to avoid entering a PIN altogether.

If you suspect your EBT card or debit card has been compromised, immediately contact the issuing agency or your bank's fraud department to freeze the account, deactivate the card, and request a new one with a fresh PIN.