Card Skimmers Are Stealing Billions. Here Is How They Work.
The U.S. Secret Service says organised criminal groups are planting tiny data-theft devices on card readers across the country, with government benefit cards among the easiest targets.
Key points
- The U.S. Secret Service removed more than 400 illegal skimming devices in 2025 alone, calling that figure a fraction of those still in use.
- Skimming costs financial institutions and consumers more than $1 billion every year, according to Secret Service estimates.
- A single skimming device can generate up to $1 million in stolen funds, Secret Service analyst Vince Porter told CBS News.
- One Secret Service operation across 328 businesses in California seized 16 devices and prevented an estimated $16.6 million in fraud losses.
- Tap-and-pay is the most effective consumer defence; government benefit cards that require a swipe carry the highest risk.
A tiny plastic device, small enough to fit in your palm, can sit on a card reader for days or weeks without anyone noticing. That is a skimmer: a gadget criminals attach to ATMs or payment terminals that secretly copies your card details and PIN every time someone swipes.
The U.S. Secret Service, best known for protecting the president but also responsible for investigating financial crimes, says skimming is getting worse. In the past two years, agents have seen a clear rise in activity. The agency estimates the fraud costs banks and ordinary people more than $1 billion a year.
How do criminals pull this off?
Installing a skimmer takes seconds. The device clips or glues over a legitimate card slot. Inside, a wireless transmitter, basically a tiny radio, sends stolen card data straight to the criminal, who can be sitting nearby or miles away.
Secret Service analyst Vince Porter told CBS News that a single device can net up to $1 million. There is no reliable way to know how long one has been active before it is found. In some cases, agents have to physically pry skimmers off terminals, leaving adhesive marks behind.
Special Agent Michael Peck, who leads the agency's criminal investigative division, said organised groups travelling into the United States from Eastern Europe, Asia, and Central and South America are behind most of the operations. One suspect reportedly entered the country from Canada by Jet Ski.
Who gets hit hardest?
People who rely on government benefit cards face the biggest risk. EBT cards, which hold money from programmes such as food stamps and housing assistance, often must be swiped rather than tapped or inserted with a chip. That swipe requirement strips away two layers of protection that newer payment methods carry.
Criminals know this. When a shop advertises that it accepts EBT, it can draw skimmer operators looking for a single terminal that processes large, regular government payments every month.
Mary Bowen, a mother of six, told CBS News her benefits vanished last week. "Literally, I've been getting food from my friends because they took everything," she said. Recovering stolen benefits is notoriously difficult because multiple federal and state agencies control the funds.
As of this reporting, CBS News had identified 32 active federal investigations spanning 15 states.
| Operation fact | Figure |
|---|---|
| Businesses inspected (California) | 328 |
| Devices checked | 1,749 |
| Skimmers seized | 16 |
| Fraud loss prevented | $16.6 million |
| Devices removed nationally in 2025 | 400+ |
| Annual industry losses | $1 billion+ |
What should you actually do?
Use tap-and-pay whenever a terminal offers it. Tapping uses a one-time digital code that is useless to anyone who intercepts it. Agent Peck called it "the best way to protect yourself as a consumer."
If you must swipe, give the card slot a firm tug before inserting your card. A skimmer often wobbles or pops off. Cover the keypad with your hand when entering a PIN.
If you use a government benefit card, check your balance frequently and report any unexplained drop to your benefits agency immediately. Timing matters: the sooner a theft is reported, the slightly better the chance of action.
