The U.S. Secret Service’s New York Field Office says a three-day operation in June uncovered 35 illegal devices used in EBT skimming across Brooklyn, the Bronx and Queens, preventing an estimated $36.5 million in unauthorized access to SNAP benefits. Agents inspected and removed covert hardware from payment terminals at multiple retail sites and seized evidence tied to schemes investigators say were harvesting Electronic Benefits Transfer data and PINs.
Secret Service operation in New York
The Secret Service said the focused enforcement action ran several days in June and targeted retail locations where checkout equipment showed signs of tampering. The agency’s New York Field Office reported seizure of 35 skimming devices and provided the agency estimate that roughly $36.5 million in SNAP benefits would have been diverted without intervention.
Officials said investigators worked on-site across Brooklyn, the Bronx and Queens to document tampered terminals and collect devices for forensic analysis. Michael Peck, assistant special agent in charge of the Secret Service’s Criminal Investigative Division, has described how networks plant and harvest these devices and the speed with which stolen value can be moved.
How EBT skimming works
EBT skimming typically combines hardware and simple surveillance. Criminals attach skimming modules to the magnetic-stripe readers of point-of-sale terminals to capture card data, then use pinhole cameras, keypad overlays or other means to capture users’ PINs. Stolen credentials can be encoded onto counterfeit cards or used by runners to withdraw benefits in person.
The FBI has described common tools used in these schemes: mag‑stripe skimmers, tiny cameras pointed at PIN pads, and overlays that record keystrokes. Because many benefit cards still rely on magnetic stripes and transaction logs for SNAP purchases often lack detailed itemization, fraud can be harder to detect than on standard debit or credit accounts.
Scale, victims and on‑the‑record observations
Federal and industry sources say the threat is widespread. The FBI and industry reporting estimate payment skimming schemes cost consumers and financial institutions more than $1 billion annually. The U.S. Department of Agriculture (USDA) notes more than 250,000 retailers nationwide are authorized to accept SNAP benefits, creating a broad attack surface when terminals or merchant procedures are compromised.
Haywood Talcove of LexisNexis Risk Solutions Government, who accompanied Secret Service agents on parts of the New York operation, said he observed stores that appeared to function largely as cash‑out points rather than food retailers. “The real victim here … They have children that are hungry and the money that was intended to go to the child is being diverted,” Talcove said, underscoring the human impact of diverted benefits.
Law enforcement reporting has indicated some groups behind skimming can be transnational and organized; officials caution such characterizations reflect ongoing investigations and should be treated as such until prosecutions provide fuller public records.
Policy response and planned fixes
Officials and advocates point to several policy and technology changes meant to reduce EBT skimming. New York Gov. Kathy Hochul announced the state will begin issuing chip-enabled EBT cards in early 2027 to replace magnetic-stripe cards and make cloning more difficult.
The shift to chip-enabled cards is part of a broader set of recommendations from fraud experts: adopt EMV-style security for benefits cards, strengthen identity verification and monitoring, and tighten merchant enrollment and oversight for stores that accept SNAP. The USDA oversees SNAP at the federal level and works with states on implementation timelines and security standards.
What SNAP recipients and retailers should do now
While systemic upgrades are phased in, officials recommend practical, immediate steps.
For SNAP recipients: Keep your EBT card and PIN secure, do not share your PIN, shield the keypad when entering it, check balances frequently and report suspicious transactions to your state’s SNAP office right away.
For retailers: Inspect point-of-sale terminals for loose or mismatched parts, use tamper-evident seals, rotate terminal hardware where practical, and report suspected tampering to your processor and law enforcement. Removing suspicious stores from the SNAP network and tightening merchant enrollment checks are also recommended by advocates.
Background and enforcement context
Secret Service officials said this was the agency’s fourth anti-skimming operation in New York this year, illustrating sustained enforcement attention. Agency representatives have described how runners and networks cash out stolen benefits and stressed that both arrests and systemic fixes are needed to reduce future thefts.
Investigations will continue as seized devices are forensically examined and as agencies work with state partners to identify compromised accounts and affected recipients.
FAQ
What is EBT skimming and how does it work?
EBT skimming generally involves hardware attached to payment terminals that captures magnetic-stripe data and separate devices or overlays that record PINs. Stolen data can be used to make counterfeit cards or enable in-person withdrawals of SNAP benefits.
How can I protect my EBT card and PIN?
Shield the keypad when entering your PIN, keep your card secure, check balances regularly, and report any unauthorized transactions or visibly altered terminals to your state’s SNAP office or local law enforcement.
When will New York switch to chip-enabled EBT cards?
New York announced a plan to begin issuing chip-enabled EBT cards in early 2027 to strengthen security and make magnetic-stripe skimming harder to execute.
Sources: Statements from the U.S. Secret Service New York Field Office; U.S. Department of Agriculture; FBI and industry reporting; on‑the‑record comments from Haywood Talcove of LexisNexis Risk Solutions Government; reporting by Fox News (“Inside NYC’s ‘perfect scam’: luxury cars, dusty shelves and the EBT secret behind the counter”).
