Some New York City stores looked open for business, but a federal operation found illegal devices hidden at checkout counters that could steal customers’ food-benefit information.
The U.S. Secret Service recovered 35 skimmers during a three-day sweep across Brooklyn, the Bronx, and Queens.
The agency estimated that removing them prevented approximately $36.5 million in potential fraud.
A fraud expert who accompanied agents said expired food and dusty shelves inside some stores raised a deeper concern. He believed certain locations were operating primarily to facilitate EBT fraud rather than generate ordinary grocery sales.
The Devices Captured Card Numbers and PINs
Criminals can place skimming equipment inside or over payment terminals used by unsuspecting customers, according to Fox News Digital. The equipment records information stored on a card’s magnetic stripe. EBT cards remain especially exposed because many still rely on magnetic stripes rather than the chip protections common on bank cards.
A pinhole camera or false keypad can capture the PIN entered during the same transaction. Once both pieces of information are available, the stolen data can be encoded onto another card and used for unauthorized purchases or withdrawals.
Some Stores Appeared Barely Interested in Selling Food
Haywood Talcove, CEO of LexisNexis Risk Solutions Government, joined Secret Service agents during the New York operation. He said he saw tuna that had expired three years earlier, syrup two years past its date, and other aging products sitting on dusty shelves.
Multiple small stores on the same block carried similar limited inventory. Those conditions led Talcove to suspect that some businesses functioned as what he called “EBT ATMs,” processing or trafficking benefits rather than relying on ordinary food sales. Federal officials did not publicly identify those stores or announce that every inspected business knowingly participated.
Stolen Benefits Can Vanish at the Start of the Month
Eligible households receive SNAP benefits electronically each month. A criminal with a cloned card can spend the balance soon after it is deposited, sometimes before the cardholder reaches a store.
The loss can leave a family without money intended for food for the remainder of the month. New York officials have described EBT skimming as part of a nationwide crisis affecting vulnerable recipients.
Cardholders can reduce exposure by freezing the card when it is not in use through the ebtEDGE app or online portal. New York also allows users to block online and out-of-state transactions, where fraudulent purchases are often made.
New York Plans to Replace Magnetic-Stripe Cards
New York has finalized plans to begin issuing more secure chip-enabled EBT cards in the first quarter of 2027. The state expects to distribute approximately two million replacement cards.
Retailers and financial institutions are being asked to update their equipment so they can process the new cards. State officials say chip technology should sharply limit skimming because criminals cannot copy the card as easily as they can with a magnetic stripe. Cardholders will be notified before their replacements are issued.
Cardholders Can Use ebtEDGE to Freeze Their Cards
Stores with expired products, unusually low normal sales, repeated high-volume EBT transactions, multiple nearby locations with the same limited inventory, or unexplained customer traffic may warrant closer review by regulators, payment processors, and law enforcement.
Cardholders should inspect payment terminals before swiping, cover the keypad when entering a PIN, avoid machines that look loose or altered, and change the PIN regularly. The New York Office of Temporary and Disability Assistance says cardholders can use ebtEDGE to freeze and unfreeze their cards, block online transactions, and block out-of-state transactions.
New York EBT users who see suspicious transactions should report the card compromised, and contact the EBT customer service number or local social services office. Suspicious skimming devices or benefit thet should also be reported to local law enforcement and the agency that administers the benefit program.