New York City bodegas allegedly operating as EBT fraud ATMs, expert says

Key Points:

• Some New York City bodegas and delis have been operating as fronts for organized Electronic Benefits Transfer (EBT) card-skimming schemes, using hidden devices to steal SNAP benefits, according to experts and recent Secret Service operations.
• Criminals install skimming devices and pinhole cameras on payment terminals to capture EBT card data and PINs, creating counterfeit cards that drain benefits, costing over $1 billion annually.
• A recent Secret Service operation in NYC uncovered 35 illegal skimming devices and prevented an estimated $36.5 million in fraud, highlighting the scale of organized crime involvement, including groups from Eastern Europe.
• Many stores involved in the fraud stock expired food and appear to exist primarily to facilitate EBT theft rather than legitimate sales, with some non-traditional businesses like laundromats and strip clubs also implicated.
• Experts call for stronger measures including upgrading EBT cards to chip technology, enhanced identity verification, and removal of suspicious stores from the SNAP program, while New York plans to issue chip-enabled EBT cards starting in 2027.