Protecting Stores and Customers from EBT Card Skimming Fraud

Article Presented By Kingston National Bank…

(Columbus) – The Ohio Investigative Unit (OIU) is issuing an alert to small and medium-sized grocery stores and convenience stores across Ohio about an escalating threat of Electronic Benefits Transfer (EBT) card skimming fraud targeting SNAP (Supplemental Nutrition Assistance Program) recipients.

Criminal organizations have increasingly targeted SNAP-authorized retail locations with skimming devices designed to steal EBT card information. These devices primarily capture data from magnetic stripes rather than chip-enabled cards and tap-to-pay systems.

The most common skimming method involves an overlay-type device placed over the keypad and magnetic swipe reader. These devices are strategically designed to capture card information and Personal Identification Numbers (PINs) from unsuspecting SNAP benefit recipients.

Point-of-sale skimming devices photos courtesy of United States Secret Service                 

Recommended Preventative Measures for Retailers

Retailers are strongly encouraged to adopt comprehensive protective strategies. One effective approach is to utilize a seal on payment devices that would require removal or covering by potential scammers. It is best practice to place these seals near numeric pads to maximize visibility. Additionally, installing protective guards can prevent scammers from placing devices over point-of-sale systems.

Daily inspections of payment terminals are crucial. Businesses should conduct thorough visual checks at the beginning and/or end of each shift, looking for clear signs of tampering. Some retailers have developed innovative detection methods, such as the low-tech solution implemented by Target for identifying potential skimming devices.              

Target’s EasySweep Skimmer Detector

Critical Steps When a Skimming Device is Discovered 

If a skimming device is found, retailers should follow a careful protocol. First, photograph the device while it remains in place. Retailers should contact local law enforcement for guidance, especially if there is any threat that the device could be accessed or could be actively transmitting the captured data. The device should be left in place for evidence collection. If removal is necessary before law enforcement arrives, retailers should handle the skimmer with gloves and place in a paper bag.

Retailers should record the date, time, and specific location where the device was discovered. For businesses with multiple point-of-sale devices, documenting the exact location is especially important.

Security video evidence can be invaluable. Retailers are advised to review footage to identify when the skimming device was placed, preserve any video that captures suspects, and inform law enforcement upon reporting.

Industry Partnership

The Ohio Investigative Unit is collaborating closely with the USDA Office of Inspector General, the Ohio Department of Job and Family Services, and local law enforcement to combat these fraud schemes. Industry associations, including the Ohio Grocers Association and Ohio Retail Merchants Association, are being engaged to share this critical information with their members.

Contact and Support

For additional guidance or to report suspicious activities, retailers can contact their local Ohio Investigative Unit District Office or local law enforcement.