Rising Skimming Threats Target U.S. Consumers and Government Benefits, Secret Service Warns
The U.S. Secret Service is sounding the alarm over a surge in skimming devices sophisticated tools that steal debit, credit, and government benefits card data with losses exceeding $1 billion annually. During a recent operation in Los Angeles, agents inspected 1,749 payment terminals across 328 businesses, seizing 16 skimmers and preventing an estimated $16.6 million in fraud.
Skimmers, often installed in seconds on ATMs or card readers, capture account details and PINs, transmitting the data wirelessly to criminals. A single device can siphon up to $1 million before detection, according to Secret Service analyst Vince Porter. The devices are difficult to spot and remove, sometimes requiring prying tools that leave residue behind.
Organized criminal groups, primarily from Eastern Europe, Asia, and Central/South America, are behind the surge. Some enter the U.S. via the Mexico border, while one suspect was apprehended after crossing from Canada on a Jet Ski. The Secret Service has 32 active federal probes spanning 15 states, reflecting the nationwide scope of the threat.
Government benefits cards, such as those for EBT (food stamps) and Section 8 housing, are prime targets due to their lack of chip or tap-to-pay security. A single card can hold thousands in taxpayer-funded benefits, making them lucrative for thieves. Victims, like Mary Bowen a mother of six whose benefits were stolen often face irrecoverable losses, leaving them unable to pay rent or buy groceries.
While major cities like Los Angeles see the highest activity, skimmers have been found in smaller towns as well. The Secret Service’s crackdowns, including recent operations in dozens of U.S. cities, aim to curb the growing threat, though officials warn the seized devices represent only a fraction of those in use.
Source: https://www.cbsnews.com/news/card-skimming-scam-crime-secret-service/
U.S. Secret Service cybersecurity rating report: https://www.rankiteo.com/company/us-secret-service
U.S. Department of Housing and Urban Development Office of Inspector General cybersecurity rating report: https://www.rankiteo.com/company/hud-oig
"id": "US-HUD1786537545",
"linkid": "us-secret-service, hud-oig",
"type": "Cyber Attack",
"date": "1/2025",
"severity": "85",
"impact": "4",
"explanation": "Attack with significant impact with customers data leaks"{'affected_entities': [{'customers_affected': 'Thousands (estimated)',
'location': 'United States',
'name': 'U.S. consumers',
'type': 'Individuals'},
{'customers_affected': 'Thousands (estimated)',
'industry': 'Government benefits',
'location': 'United States',
'name': 'Government benefits recipients (EBT, Section '
'8 housing)',
'type': 'Individuals'},
{'industry': 'Retail, Financial Services',
'location': 'United States (Los Angeles and other '
'cities)',
'name': 'Businesses with payment terminals',
'type': 'Organizations'}],
'attack_vector': 'Physical skimming devices installed on payment terminals',
'customer_advisories': 'Advice to monitor account activity and report '
'suspicious transactions',
'data_breach': {'data_exfiltration': 'Wireless transmission to criminals',
'personally_identifiable_information': 'Yes (account details, '
'PINs)',
'sensitivity_of_data': 'High (financial and personally '
'identifiable information)',
'type_of_data_compromised': ['Debit card data',
'Credit card data',
'Government benefits card data',
'PINs']},
'description': 'The U.S. Secret Service is sounding the alarm over a surge in '
'skimming devices that steal debit, credit, and government '
'benefits card data, with losses exceeding $1 billion '
'annually. Skimmers capture account details and PINs, '
'transmitting the data wirelessly to criminals, often '
'installed on ATMs or card readers. Organized criminal groups '
'from Eastern Europe, Asia, and Central/South America are '
'behind the surge, targeting government benefits cards due to '
'their lack of chip or tap-to-pay security.',
'impact': {'data_compromised': 'Debit, credit, and government benefits card '
'data (account details, PINs)',
'financial_loss': '$1 billion annually',
'identity_theft_risk': 'High',
'payment_information_risk': 'High',
'systems_affected': 'Payment terminals, ATMs'},
'initial_access_broker': {'high_value_targets': 'Government benefits cards, '
'payment terminals'},
'investigation_status': 'Ongoing (32 active federal probes across 15 states)',
'lessons_learned': 'Government benefits cards are particularly vulnerable due '
'to lack of chip or tap-to-pay security. Skimming devices '
'are difficult to detect and can cause significant '
'financial losses before removal.',
'motivation': 'Financial gain',
'post_incident_analysis': {'corrective_actions': 'Seizure of skimmers, public '
'advisories, ongoing '
'investigations',
'root_causes': 'Lack of security features on '
'government benefits cards, ease of '
'installing skimming devices, '
'organized criminal networks'},
'recommendations': ['Enhance security on government benefits cards (e.g., '
'chip or tap-to-pay)',
'Increase public awareness of skimming threats',
'Improve monitoring and inspection of payment terminals',
'Strengthen cross-border cooperation to disrupt criminal '
'networks'],
'references': [{'source': 'U.S. Secret Service'}],
'response': {'communication_strategy': 'Public warnings and advisories',
'containment_measures': 'Inspection of payment terminals, '
'seizure of skimmers',
'law_enforcement_notified': 'U.S. Secret Service'},
'stakeholder_advisories': 'Public warnings about skimming threats, especially '
'for government benefits recipients',
'threat_actor': ['Organized criminal groups from Eastern Europe',
'Organized criminal groups from Asia',
'Organized criminal groups from Central/South America'],
'title': 'Rising Skimming Threats Target U.S. Consumers and Government '
'Benefits',
'type': 'Skimming',
'vulnerability_exploited': 'Lack of chip or tap-to-pay security on government '
'benefits cards'}