U.S. Secret Service and Partners Conduct EBT Fraud and Skimming Outreach in Alaska
From the U.S. Secret Service Office on August 5, 2024
WASHINGTON – The U.S. Secret Service, alongside state and local law enforcement partners, conducted a payment card skimming and Electronic Benefit Transfer fraud outreach operation Aug. 1-2 in several Alaskan cities.
Personnel from the U.S. Secret Service, Anchorage Police Department, the U.S. Attorney’s Office in the District of Alaska, U.S. Department of Agriculture Office of Inspector General and the Alaska State Troopers participated in an outreach operation that saw teams visit 165 businesses in Anchorage, Palmer, Wasilla, Kenai, Soldotna and Seward. These teams distributed educational materials about EBT fraud and card skimming to help businesses better identify the warning signs of illegal skimming devices in their point-of-sale terminals, gas pumps and ATMs. They also inspected ATMs, gas pumps and point-of-sale terminals for skimming devices.
Two skimming devices were recovered during the operation. In total, more than 1,750 point-of-sale terminals, gas pumps and ATMs were inspected.
“In the past few months, we’ve seen an increase in credit card skimming and EBT fraud in the greater Anchorage area,” said Glen Peterson, Special Agent in Charge of the U.S. Secret Service’s Seattle Field Office, whose area of responsibility includes Alaska. “Our goal is to locate and remove skimming devices before people’s credit card data can fall into the hands of criminals.”
This is the first time an outreach operation such as this has been conducted in the state of Alaska by the U.S. Secret Service.
“The Anchorage Police Department is thankful for the collaboration with the U.S. Secret Service and other state agencies to safeguard our retail businesses and citizens from the increasing threat of skimming operations,” Anchorage Police Chief Sean Case said. “This crime affects all consumers, and we appreciate the effort the U.S. Secret Service is providing to help local and state law enforcement agencies in identifying and removing these illegal skimming devices.”
EBT information and other payment card numbers are stolen when criminals install an illegal skimming device to the point-of-sale terminal in order to capture card information. They then encode the stolen data onto another card with a magnetic strip, such as a gift card or hotel key. It is estimated that skimming costs consumers and financial institutions more than $1 billion each year.
“The USDA OIG is dedicated to upholding the integrity of the EBT card program,” USDA OIG Special Agent in Charge Shawn Dionida said. “We thank the U.S. Attorney’s Office, U.S. Secret Service, and local law enforcement partners on our joint effort to combat skimming operations and associated EBT fraud in Alaska. We will work diligently with our partner agencies to hold conspirators accountable for stealing EBT card information from families who rely on these benefits to survive.”
“Credit card, ATM card, and EBT card skimming and fraud is a growing issue across the State of Alaska and something that the Alaska State Troopers regularly encounter during our routine investigations,” Alaska State Troopers Colonel Maurice Hughes said. “Your Alaska State Troopers will continue to work closely with our local, state, and federal law enforcement partners to not only prevent this type of fraud from occurring, but also hold those that victimize Alaskans accountable for their actions. We appreciate the efforts of the U.S. Secret Service and U.S. Department of Agriculture’s Office of Inspector General for putting together this special operation.”
Law enforcement agencies have seen a nationwide increase in skimming over the past 18 months, particularly targeting EBT cards. EBT fraud targets the nation’s most vulnerable communities. 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 state government’s monthly deposits.
“With the rise in EBT fraud statewide, it’s crucial to raise awareness about skimming and use our law enforcement tools to protect Alaskans,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “I want to thank the federal, state and local law enforcement agencies that collaborated on this operation. Their dedication to tackling this issue has been impressive, and we will keep working together to hold those who target Alaskans accountable for the damage they cause.”
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.
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 they keypad with 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.
Utilize debit and credit cards with chip technology. In the U.S., there are fewer devices that steal chip data versus magnetic strip data.
