Secret Service operation cracks down on EBT card skimmers

LOS ANGELES (KABC) -- The U.S. loses $16 billion annually from card skimming scams. Federal, state and local agencies have teamed up to tackle card skimming head on, with a special focus on educating store owners and employees on what to look out for.

It's an ongoing operation led by the Secret Service to combat card skimmers targeting gas stations, ATMs and even grocery stores. But it's not your credit card information they're after, it's EBT cards.

"The access points are easy and vulnerable. This gives them access to people's funds that are delivered every month, the government protected funds," Secret Service Assistant Director Mike Centrella said. "And again, this is very impactful for a community that's struggling, and our goal is to get the message out and protect the community."

Skimmers are targeting the most vulnerable. This is an ongoing operation between the Secret Service, Homeland Security Investigations and U.S. Department of Agriculture to stop thieves from draining funds that are nonrefundable. The scammers usually target low-income areas.

"Unfortunately, EBT fraud has been a major issue in this area and across the country," said Armando Marquez with the Secret Service. "The Secret Service is doing our part to ensure that those funds remain who they're intended for.

"We found that individuals have staked out and operated at ATMs to carry out this fraud, and we're doing our best to impact that fraud and stop it when possible."

The Secret Service says it's easier to target EBTs because there aren't enough security measures in place. It all comes down to the chip, which many EBT cards don't have. The agency wants to change that.

"California is going forward in that direction of installing chips to prevent fraud like this from happening," Marquez said. "We have seen a decline in recent months and years compared to what it used to be."

More than 10 skimmers were arrested Thursday morning, but the work wasn't about busting criminals - it's about outreach and education.

Secret Service Director Sean Curran was also in town overseeing the ongoing operation and personally stepping in to educate store owners and employees on ways to prevent skimmers.

As skimming technology continues to evolve, so does the commitment to stopping it.