Rise in Skimming Scams and Their Impact on Americans

Rise in Skimming Scams and Their Impact on Americans

Many individuals in the United States might have unknowingly fallen victim to predatory scams. The U.S. Secret Service reports an increase in the use of skimming devices. These devices capture account details and personal identification numbers from bank and government benefits cards.

Setting up these devices takes only seconds on debit and credit card readers. CBS News collaborated with the Secret Service to investigate the presence of skimmers at numerous retailers in Los Angeles. When placed on card terminals or ATMs, these devices gather data each time a card is swiped, often transmitting it wirelessly to scammers. Secret Service analyst Vince Porter noted a single skimmer can potentially steal up to $1 million.

Identifying skimmers is challenging, and removing them is even harder. In some instances, law enforcement needs to forcibly remove them, leaving residue behind. It’s difficult to determine how long a skimmer has been operational, pointed out Porter.

In 2025, the Secret Service removed over 400 illegal skimming devices. This number represents only a fraction of the total. A CBS News investigation revealed 32 active federal probes spread across 15 states. Skimming activity has surged in recent years. As this crime becomes prevalent, financial losses also mount. Skimming causes more than $1 billion in losses annually, according to Secret Service estimates.

Special agent Michael Peck, who leads the Secret Service’s criminal investigative division, attributes the scam to organized crime groups from Eastern Europe, Asia, and Central and South America. These groups often enter the U.S. through the U.S.-Mexico border. Peck shared that one suspect even crossed from Canada on a Jet Ski.

“A one-stop crime,” Porter described it.

Criminals frequently target stores accepting EBT cards, which contain government benefit funds. Each government assistance card may hold thousands of taxpayer dollars monthly. These include food stamps and Section 8 housing payments. Unlike cards with chip or tap-and-pay security features, many assistance cards require swiping.

Advertising acceptance of these funds makes stores vulnerable. Porter explained that once benefits are stolen, recovering them proves nearly impossible due to the involvement of multiple agencies. Mary Bowen, a mother of six, found herself unable to pay rent or buy groceries after her benefits were stolen last week.

“It just disappeared. I don’t even have cash in here,” Bowen lamented. “Literally, I’ve been getting food from my friends because they took everything. They took it all from me.”

In a recent operation, law enforcement inspected 1,749 devices across 328 businesses in California. They confiscated 16 skimmers, averting approximately $16.6 million in fraud losses, as reported by the Secret Service. Similar operations have taken place in numerous U.S. cities.

Skimmers pose threats mainly in major cities like Los Angeles, though smaller towns aren’t immune. Peck advises avoiding swiping whenever feasible. Although government benefit cards usually need swiping, those with alternatives should use tap-and-pay. This method offers “the best way to protect yourself as a consumer,” according to Peck.

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