Secret Service uncovers multiple card skimmers in Tennessee

Combating Credit Card Skimming in Tennessee

Law enforcement agencies have been working tirelessly to combat a growing threat that targets vulnerable communities across Tennessee. A recent operation conducted by the U.S. Secret Service has uncovered an alarming method used by criminals to steal sensitive financial information from individuals relying on government assistance programs.

The operation, which involved federal, state, and local partners, focused on identifying and removing skimming devices that capture data from EBT (Electronic Benefit Transfer) cards. These devices are often placed on point-of-sale terminals, gas pumps, and ATMs, allowing thieves to access critical information such as PINs and account details. This type of fraud is particularly concerning for low-income families who depend on SNAP benefits to meet their basic needs.

The Rise of Skimming Devices

For the past two years, investigators have reported a significant increase in this form of crime. Criminals use sophisticated techniques to clone EBT cards and quickly drain funds from accounts. This process, known as skimming, has become more advanced over time, with some operations involving international groups and the sale of stolen data on the dark web.

Mark Switzer, special agent in charge of the Memphis field office for the U.S. Secret Service, emphasized the importance of collaboration in addressing this issue. “We couldn’t do this without you. We do not have the manpower to go out and check the numbers that we have,” he said during a briefing. The goal of the operation was not only to detect and remove skimming devices but also to educate businesses on how to identify potential threats.

A Coordinated Effort

During the operation, twelve teams were deployed across West Tennessee and North Mississippi, inspecting thousands of point-of-sale terminals, gas pumps, and ATMs. WREG Investigators had exclusive access to one of the teams as they visited multiple businesses to search for signs of skimming activity.

Switzer explained that these devices are designed to look like genuine components, making them difficult to detect. “These things get placed right on top of the point-of-sale terminal,” he said. The devices capture data as each button is pressed while simultaneously functioning as the real keypad underneath.

The operation resulted in the discovery of four skimming devices, which were removed and marked as evidence. Agents are now working to determine who installed them and how long they had been in place. According to Switzer, each recovered skimmer prevents approximately $1 million in potential fraud.

Impact on Vulnerable Communities

The impact of this crime extends beyond individual victims. For families relying on SNAP benefits, the loss of funds can be devastating. Katherine Jones, a grandmother and authorized representative on her daughter’s account, shared her frustration after her family’s EBT card was compromised. “It’s just frustrating that, you know, people can so easily access your information and use it without a care in the world,” she said.

Switzer highlighted the broader implications of this crime, noting that taxpayers may ultimately bear the cost if benefits are not replaced. In 2022, the U.S. Congress approved replacing stolen benefits, but this initiative ended in December. While states have the option to replace lost benefits, Tennessee has not opted in.

Protecting Your Information

To help customers protect themselves, the Tennessee Department of Human Services (TDHS) recommends using ebtEDGE, a mobile app that offers enhanced security features. These include card-freezing capabilities, regular PIN updates, and monitoring for suspicious transactions. The app also allows users to log in securely using touch ID or facial recognition instead of entering traditional credentials.

Customers can download the ebtEDGE app from the Apple App Store or Google Play Store. Instructional videos are available for those who need guidance on how to use the app effectively.

Looking Ahead

While the current operation has prevented millions in potential fraud, the threat of skimming remains a pressing concern. The USDA has acknowledged the importance of chip-based EBT cards in protecting benefits, but adoption is still limited. Only a few states have implemented this technology, and Tennessee is currently exploring options to enhance fraud prevention.

As the fight against credit card skimming continues, law enforcement and community organizations are working together to ensure that vulnerable populations remain protected. By staying informed and taking proactive steps, individuals can help reduce the risk of becoming victims of this growing crime.