MEMPHIS - The U.S. Secret Service, U.S Department of Agriculture Special Investigations Unit, the Memphis Police Department, Shelby County Sheriff’s Office, the Tennessee Highway Patrol Criminal Investigative Division, the Tennessee Department of Human Services Office of Inspector General, Collierville Police Department, Milan Police Department, Bartlett Police Department, Germantown Police Department, Jackson Police Department, Adamsville Police Department, Atoka Police Department, all of Tennessee, were joined by the Desoto County Sheriff’s Office, Hernando Police Department, both of Mississippi, to conduct a payment card skimming and Electronic Benefit Transfer fraud outreach operation in various cities throughout the metropolitan Memphis area July 8 and 9, 2025.
The Secret Service greatly appreciates the partnerships that assisted us in Western Tennessee and Northern Mississippi to help combat this crime. Vulnerable populations who rely on these benefits are preyed upon when criminal organizations attack these programs. They are literally stealing food from the mouths of children, to line their pockets and in some cases, support international terrorist activities through fraud. Any effort to educate the community businesses and stop this type of crime from continuing is a continued priority for the Secret Service.
Law enforcement personnel visited more than 486 businesses to check for and remove illegal skimming devices from ATMs, gas pumps, and point-of-sale terminals. Four skimming devices were recovered during the operation preventing an estimated potential loss of $4.2 million. In total, more than 2,200 point-of-sale terminals, 857 gas pumps and 234 ATMs were inspected.
They also distributed educational materials about Electronic Benefit Transfer fraud and skimming to businesses to help them better identify the warning signs of illegal skimming devices in their point-of-sale terminals, gas pumps and ATMs.
Criminals steal EBT and other payment card numbers by installing illegal skimming devices on ATMs, gas pumps, and merchant point-of-sale terminals. Criminals use skimming to capture card information from EBT cards and then encode that data onto another card with a magnetic strip, such as a gift card. It is estimated that skimming costs financial institutions and consumers more than $1 billion each year.
Law enforcement agencies have seen a nationwide increase in skimming, 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 monthly deposits.
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 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.
- Use debit and credit cards with chip technology. In the U.S., there are fewer devices that steal chip data versus magnetic strip data. When possible, we recommend people utilize the tap-to-pay option.
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