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Many Americans may have encountered a predatory scam — and may not even know it.
The U.S. Secret Service says the use of skimming devices, which capture account details and personal identification numbers from bank and government benefits cards, is on the rise. The devices can be set up in seconds on debit and credit card readers.
CBS News joined the Secret Service, which investigates financial crimes as well as protecting the president, for a ride-along while agents searched for skimmers at hundreds of retailers across Los Angeles.
Once the device is in place on a card terminal or ATM, it collects data every time a card is swiped. Often, a wireless transmitter hidden inside the skimmer sends the data to the scammer. Secret Service analyst Vince Porter told CBS News that officials believe a single skimmer can net up to $1 million in stolen funds.
The devices are tough to recognize and harder to remove — in some cases, law enforcement has to pry the skimmer off, leaving residue behind. There’s no way to know how long a device has been in use, Porter said.
In 2025 alone, the Secret Service removed more than 400 illegal skimming devices, which the agency said accounts for just a fraction of the devices out there. A CBS News investigation has found 32 active federal probes spanning 15 states.
The agency and law enforcement partners have noticed an increase in skimming activity in the past two years. As the crime becomes more common, the losses increase. Skimming costs financial institutions and consumers more than $1 billion each year, according to Secret Service estimates.
Special agent Michael Peck, the leader of the Secret Service’s criminal investigative division, said that groups of organized criminals from outside the country are responsible for the scam.
The groups enter the U.S. from Eastern Europe, Asia and Central and South America, Peck said, with many crossing the U.S.-Mexico border to enter the country. One subject was apprehended after traveling down from Canada on a Jet Ski, Peck told CBS News.
“A one-stop crime”
Criminals often target stores that take EBT cards, which hold government benefit money. A single government assistance card can receive thousands of taxpayer dollars from federal and state programs, including food stamps and Section 8 housing payments, each month.
Many government assistance cards have to be swiped, leaving them without the added security of tap-and-pay or a chip. When stores advertise acceptance of these funds, they can become a target, Porter said.
“It’s a one-stop crime,” he said.
Victims often have little recourse. Once the benefits are stolen, they can be nearly impossible to recover because of the number of agencies involved in distributing the funds.
Mary Bowen, a mother of six who relies on assistance, said she can’t pay her rent or buy groceries because her benefits were stolen last week.
“It just disappeared. I don’t even have cash in here,” Bowen said. “Literally, I’ve been getting food from my friends because they took everything. They took it all from me.”
As part of this operation, law enforcement visited 328 businesses and inspected 1,749 devices in California. They seized 16 skimmers, preventing an estimated $16.6 million in fraud loss, according to the Secret Service. Similar operations have been carried out in dozens of U.S. cities.
Scams are most likely to be found in major cities like Los Angeles. But even in small towns, skimmers can pose a threat.
To stay safe, avoid swiping as much as possible, Peck said. Government benefit cards usually need to be swiped, putting them at a disadvantage. But for those who have the option, using tap-and-pay is “the best way to protect yourself as a consumer,” Peck said.
