Jul 24, 2025
A special multi-agency operation took place in parts of Tennessee and Mississippi to fight a growing and costly form of fraud — one that can directly impact families in need who rely on electronic benefit transfers (EBT) to get by.
From July 8-9, the Secret Service, along with local law enforcement officers, launched a coordinated effort. They visited hundreds of businesses to search for illegal card skimmers that could potentially lead to the siphoning of government benefits before recipients use them.
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“This is an operation that is primarily based around education and outreach,” Memphis Field Office Special Agent in Charge Mark Switzer shared during a morning brief, as captured by WREG News Channel 3 cameras in a story published July 8.
In total, more than 2,200 point-of-sale (POS) terminals, 857 gas pumps and 234 ATMs were inspected across more than 486 businesses, according to the Secret Service. Four skimming devices were recovered, which the agency estimates prevented potential losses of $4.2 million.
The broadcaster accompanied agents and was present when one skimming device laid on top of a card reader’s keypad at a Memphis grocery store was retrieved and bagged as evidence.
How card skimming works
Card skimming is a type of fraud that involves installing hidden devices on ATMs, gas pumps or POS devices to steal information from card users. These devices can include keypad overlays that record a PIN and card readers that copy card data. In some cases, a small camera is used to record the transaction.
“There’s a number of [criminals] that are out there that are getting ahold of this information and then using it for their own purposes,” Switzer told WREG News Channel 3.
With this data in hand, fraudsters can clone your card and quickly drain your account. The Secret Service estimates skimming costs consumers and financial institutions over $1 billion each year.
But the stakes are often higher for EBT cardholders, who are vulnerable and rely on benefits to survive, and states may not always be able to replace stolen funds.
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“They are literally stealing food from the mouths of children,” the Secret Service described in a news release.
EBT cards in Tennessee are especially vulnerable because they don’t have a chip like many bank-issued cards. Magnetic stripe cards are easier to copy, making them prime targets for skimmers.
Agents of the task force are working to uncover who installed the device found in the Memphis grocery store, per the broadcaster, and they educated employees on how to better detect these devices.
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Avoid falling victim to card skimming
Card skimming has become a major issue for both EBT and credit card users. The hidden devices can be hard to spot, and after the information is gathered money can be removed from an account quickly.
Here are a few tips to reduce your risk:
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Check the scanner before you swipe: Before swiping or inserting your card, gently tug on the card reader and the keypad. If they feel loose or look off, don't use that terminal.
Use visible POS machines: If you’re using a debit card, opt for bank ATMs. If you're paying with a credit or EBT card, use the card inside or at well-lit terminals in visible locations.
Block your PIN: Use your hand to shield your PIN when you punch it in. While some scammers use keypad covers, others use pinhole cameras to record transactions.
Check your account regularly: Make sure to check your bank or EBT card account often and verify even small purchases. Keeping a record of where and when you use EBT funds can help identify suspicious transactions.
Change your PIN before benefits hit: If you have an EBT card, consider changing your PIN regularly or the day before benefits are scheduled to hit. This way, if someone has your PIN from last month, they may not have access to your new funds.
If you suspect your card has been compromised, call the customer service line immediately and have your card frozen. Report any fraud to your bank or EBT service provider. Above all, be alert. Staying vigilant is your best defense against card skimming.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
