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This card-skimming scam has stolen millions. Here's how the Secret Service is cracking down.
CBS News • • business
Key Points:
- The U.S. Secret Service reports a rise in the use of skimming devices that steal account details and PINs from bank and government benefits cards by attaching quickly to card readers and ATMs.
- These skimming devices can capture data wirelessly and are difficult to detect or remove, with a single device potentially stealing up to $1 million, contributing to over $1 billion in annual losses to consumers and financial institutions.
- Organized criminal groups from Eastern Europe, Asia, and the Americas are behind many of these scams, often entering the U.S. through various borders, targeting stores that accept government benefit cards like EBT, which lack advanced security features.
- Victims of skimming fraud, especially those relying on government assistance, often face significant hardship with little chance of recovering stolen funds due to the complexity of involved agencies.
- Law enforcement operations have inspected thousands of devices and seized dozens of skimmers, preventing millions in fraud, while advising consumers to use tap-and-pay methods when possible to reduce risk.
