Tipsheet

U.S. Secret Service Seized 16 Illegal Skimmers, Stopped $16M in Fraud

The U.S. Secret Service, working with local law enforcement partners, prevented an estimated $16.7 million in losses to Orlando-area consumers this week as part of a two-day outreach operation targeting illegal payment card skimming and Electronic Benefit Transfer fraud.

Law enforcement personnel visited 853 area businesses in Osceoloa, Orange and Seminole counties during the operation conducted December 2-3. More than 7,340 point-of-sale terminals, gas pumps and ATMs were inspected during the operation.

Teams also distributed educational materials about credit card skimming to help businesses identify illegal skimming devices in their point-of-sale terminals, gas pumps and ATMs.

“EBT fraud is an epidemic around the country. It’s so devastating to families that are victimized. With these skimmer operations, we’re able to connect different individuals to these crimes and we’ve been very successful,” said Special Agent in Charge Caroline O’Brien-Buster of the U.S. Secret Service – Orland Field Office. “These nefarious actors are very organized and they’re very good at what they do, but so are we. We can’t do what we do without our partners, and we are very, very appreciative of them.”

Personnel from the Brevard, Citrus, Orange and Osceola County sheriff’s offices, the Altamonte Springs, Casselberry, Orlando and Sanford police departments and the Florida Department of Agriculture participated in the operation.


“The bad guys that we are targeting, mostly transnational organized crime groups, they travel the United States, and they know what they’re doing, and they know that we are on to them,” said Assistant Special Agent in Charge Michael Peck, of the Secret Service Criminal Investigative Division.

This effort follows a series of similar operations conducted by the U.S. Secret Service and law enforcement partners nationwide.

Criminals often steal payment card numbers by installing illegal skimming devices on ATMs, gas pumps and merchant point-of-sale terminals. Scammers use skimming technology to capture card information from credit cards and encode that data onto another card with a magnetic strip.

It is estimated that skimming costs financial institutions and consumers more than $1 billion each year.

There are several precautions consumers can take to protect themselves: 

•           Inspect ATMs, point-of-sale terminals and other card readers. Look for anything loose, crooked, damaged, or scratched. Do not use a card reader if anything appears unusual.
•           Whenever possible, use tap-to-pay technology or use debit and credit cards with chip technology.
•           If using a debit card at a gas station, run it as a credit card to avoid entering a PIN. If that is not an option, consumers should use their hand to hide their PIN to block scammers who may be using tiny pinhole cameras above the keypad area to record 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.