For the first time ever, the U.S. Secret Service conducted an intelligence operation in the state of Alaska on payment card skimming and Electronic Benefit Transfer (EBT) fraud.
© Shutterstock
“Over the past few months, we’ve seen an increase in credit card skimming and EBT fraud in the greater Anchorage area,” said Glen Peterson, special agent in charge of the U.S. Secret Service’s Seattle field office, which covers Alaska. “Our goal is to locate and remove skimming devices before people’s credit card information can fall into the hands of criminals.”
During the reconnaissance operation conducted in several Alaska cities on August 1 and 2, more than 1,750 point-of-sale terminals, gas pumps and ATMs were checked. According to the Secret Service, two skimming devices were seized during the operation.
The Secret Service worked with state and local law enforcement partners, including personnel from the Anchorage Police Department, the U.S. Attorney’s Office for the District of Alaska, the U.S. Department of Agriculture Office of Inspector General (USDA OIG), and the Alaska State Troopers.
The teams visited 165 businesses in Anchorage, Palmer, Wasilla, Kenai, Soldotna and Seward, Alaska, and also distributed educational materials on EBT fraud and card skimming to help businesses better recognize the warning signs of illegal skimming devices in their POS terminals, gas pumps and ATMs.
“The Anchorage Police Department is grateful for the partnership with the U.S. Secret Service and other state agencies to protect our retail stores and citizens from the increasing threat of skimming operations,” said Anchorage Police Chief Sean Case. “This crime affects all consumers and we appreciate the efforts of the U.S. Secret Service to assist local and state law enforcement in identifying and removing these illegal skimming devices.”
EBT information and other payment card numbers are stolen when criminals install an illegal skimming device on the POS terminal to steal card information. They then encode the stolen data on another card with a magnetic stripe, such as a gift card or hotel key, according to the Secret Service, which estimates that consumers and financial institutions lose more than $1 billion annually to skimming.
“The USDA OIG is committed to maintaining the integrity of the EBT card program,” said Shawn Dionida, USDA OIG Special Agent in Charge. “We thank the U.S. Attorney’s Office, the U.S. Secret Service, and local law enforcement partners for our joint efforts to combat skimming operations and related EBT fraud in Alaska.”
“We will work hard with our partner agencies to hold the conspirators accountable for stealing EBT card information from families who rely on these benefits to survive,” Dionida added.
Alaska State Troopers Lt. Col. Maurice Hughes said skimming and fraud involving credit cards, debit cards and EBT cards is a growing problem across the state and is something state troopers regularly encounter during routine investigations.
Law enforcement agencies nationwide have also observed an increase in skimming activity over the past 18 months, particularly involving EBT cards.
“With the rise in EBT fraud across the state, it is critical to raise awareness of skimming and utilize our law enforcement tools to protect Alaskans,” said U.S. Attorney Lane Tucker for the District of Alaska.
