Rising Threat of Skimming Scams in the U.S.

Many people in the U.S. might have experienced a scam without realizing it. The use of skimming devices is increasing, according to the U.S. Secret Service. These devices capture account details and PINs from bank and government benefits cards. They can be quickly installed on card readers.

CBS News joined the Secret Service, which investigates financial crimes and protects the president, to check for skimmers at retailers in Los Angeles. Once installed on a card terminal or ATM, a skimmer collects data with each card swipe. A hidden wireless transmitter often sends the data to scammers. Vince Porter, a Secret Service analyst, estimates a single skimmer can steal up to $1 million.

Skimmers are difficult to spot and remove. Sometimes law enforcement must pry them off, leaving residue. The duration a skimmer has been active remains unknown.

The Impact on Financial Institutions

In 2025, the Secret Service removed over 400 illegal skimming devices, which they believe is just a small percentage. A CBS News investigation identified 32 active federal probes in 15 states. The Secret Service notes an increase in skimming cases over the past two years. Skimming costs financial institutions and consumers more than $1 billion annually.

Michael Peck, leader of the Secret Service’s criminal investigative division, suggests organized criminals from outside the U.S. are responsible. Groups from Eastern Europe, Asia, Central, and South America cross into the U.S., often entering via the U.S.-Mexico border. One individual was caught after traveling from Canada on a Jet Ski.

A Simple Crime with Complex Consequences

Criminals target stores that accept EBT cards, which are used for government benefits like food stamps and housing payments. These cards often require swiping, lacking tap-and-pay or chip security. Stores advertising these funds may become targets. For victims, recovery is challenging due to the multiple agencies involved.

Mary Bowen, a mother relying on assistance, is an example. Her benefits were stolen, leaving her unable to pay rent or buy groceries. She said, “It just disappeared. I’ve been getting food from my friends because they took everything.”

Preventive Measures and Law Enforcement Actions

In their operation, law enforcement visited 328 businesses in California, inspected 1,749 devices, and seized 16 skimmers. This saved an estimated $16.6 million in fraud.

Skimmers pose a threat in major cities and small towns. To stay safe, avoid swiping cards when possible. Government benefits cards often need swiping, increasing risk. If available, using tap-and-pay is the best protection.