The U.S. Secret Service recovered 35 skimming devices during a three-day sweep across Brooklyn, the Bronx and Queens, an action officials say prevented about $36.5 million in potential EBT fraud. A fraud expert who accompanied agents reported expired goods and dusty shelves that suggested some stores may have been operating primarily to process benefits. Many EBT cards still use magnetic stripes and remain vulnerable; New York plans to issue chip-enabled EBT cards beginning Q1 2027. Cardholders are advised to freeze cards via ebtEDGE, block online or out-of-state purchases, inspect payment terminals, and report suspicious activity.
Secret Service Seizes 35 EBT Skimmers in NYC, Says $36.5M in Fraud Was Prevented
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The U.S. Secret Service recovered 35 illicit skimming devices from checkout counters during a three-day operation across Brooklyn, the Bronx and Queens, seizing equipment officials say could have captured customers' electronic food-benefit (EBT) information.
Federal officials estimated that removing the devices prevented roughly $36.5 million in potential fraud. Agents were accompanied by fraud experts who flagged conditions in some stores—expired merchandise, dusty shelves and unusually sparse inventory—that raised concerns some locations were operating primarily to process fraud rather than ordinary grocery sales.
How EBT Skimming Works
Skimming devices are often fitted inside or over payment terminals to read the data encoded on a card's magnetic stripe. Because many EBT cards still rely on magnetic stripes rather than chip technology, they remain especially vulnerable. Criminals may also install a pinhole camera or a false keypad to capture the PIN entered during a transaction. With both magnetic-stripe data and a PIN, thieves can encode the information onto another card and make unauthorized purchases or withdrawals.
Haywood Talcove, CEO of LexisNexis Risk Solutions Government, joined Secret Service agents during the sweep and reported seeing tuna that had expired three years earlier, syrup two years past its date, and other aging products on dusty shelves—signs he said some stores may have functioned as "EBT ATMs." Federal officials did not identify the inspected stores or assert that every business knowingly participated in fraud.
Protecting Recipients and Reducing Risk
SNAP/Electronic Benefit Transfer recipients receive benefits electronically each month. If a cloned card is used immediately after funds are deposited, families can lose their food benefits before they can access them. To reduce risk, New York EBT users can:
- Freeze or unfreeze their card using the ebtEDGE app or the program's online portal when not in use.
- Block online and out-of-state transactions—common channels for fraudulent purchases.
- Inspect terminals before swiping, cover the keypad when entering a PIN, avoid terminals that look loose or altered, and change PINs regularly.
Cardholders who see suspicious transactions should report their card compromised, contact the EBT customer service number or their local social services office, and notify local law enforcement if they find a suspected skimming device.
Chip Cards Coming in 2027
New York State has finalized plans to issue chip-enabled EBT cards beginning in the first quarter of 2027 and expects to distribute about two million replacement cards. Retailers and payment processors will need to upgrade equipment to accept chip cards; state officials say chip technology should sharply limit skimming because it is much harder to clone than magnetic stripes. Cardholders will be notified before replacements are mailed.
Officials say regulators, payment processors and law enforcement should scrutinize stores that display expired products, report unusually low regular sales, process repeated high-volume EBT transactions, have multiple nearby locations with similar sparse inventory, or show unexplained customer traffic.
Bottom line: The sweep removed dozens of devices and likely prevented millions in fraud, but recipients and retailers should remain vigilant until chip-enabled EBT cards are widely adopted.
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