Opinion: Food stamp fraud in Denver: How to spot a card skimmer

Photo byColorado Department of Human Services

According to the Denver Department of Human Services, someone in Philadelphia fraudulently used my EBT account this week.

The worst part of being the victim of EBT fraud was the humiliation of my food stamp card being declined. The line at Walmart was ridiculously long, and I held it up for 10 minutes and left behind a cart full of groceries. If looks could kill, I would be dead. Being out my groceries did not feel particularly good either.

I did go to 7-Eleven on Quebec Street about 2 a.m. Thursday, two hours after my SNAP benefits posted, and spent $24. But when I went to Walmart that afternoon I learned the car only had 39 cents remaining on it.

The good news is, I borrowed money from a neighbor and will not go without groceries this month. And I may even get my stolen benefits back. I hope so because next month the money will be tight. I am repaying the neighbor with interest.

But my problems are small. For someone on the street with no income at all, having benefits siphoned off their card is devastating. For most people experiencing homelessness, their EBT ration is the only semblance of an income that they have.

Policy changed last year

The good news is that last year, the Colorado Department of Human Services instituted processes for refunding stolen benefits. According to a news release, only benefits lost through electronic theft are eligible for replacement. Benefits cannot be replaced if a physical EBT card was lost or stolen, if the card owner gave their card number and/or PIN to someone, or if they wrote their PIN on their EBT card.

“We are pleased that there is now an avenue for people to get benefits returned to them that were stolen via card skimming or cloning,” said Karla Maraccini, director of CDHS’s Food and Energy Assistance Division, in the news release. “We urge anyone who feels they may be a victim of electronic theft to contact their county as soon as possible.”

You must notify your local DHS office within 30 days of learning of the fraud on your account. They will send you a form to complete and return via email. They will then investigate your claim and may issue a benefits refund.

There was an unauthorized charge on another of my accounts at the same 7-Eleven on Quebec Street several months ago. I had to go through the same song and dance with paperwork to get reimbursed when that occurred.

EBT fraud not uncommon

According to the news release, such fraud is not uncommon. In just seven weeks in July and August of 2023, Colorado returned $167,516.58 in stolen funds to 255 recipients of SNAP and other benefits, the news release stated.

The way the criminals get cardholders' information is through skimmers. Skimmers are placed on cash registers at retailers. One wonders if employees place the skimmers there since they are in control of the registers.

Spotting card skimmers

The skimmers can be seen with the naked eye and dismantled.

“As customers swipe their cards into the skimmer, the device saves and stores card information immediately,” according to the news release. “If a credit card slot looks different from the other card readers at the store, it might be a setup for card-skimming fraud.”

The news release advises that before sliding a credit card through the machine, users should “gently tug on the reader to ensure it is securely attached; skimmers will easily pop off with little effort. There is often a small camera attached to capture PIN numbers as they are entered, so users should cover their finger with their other hand while pressing the buttons.”

What to do if skimmer is found

If a user finds a credit card skimmer, they should contact the store manager or the police to file a police report, according to the news release. This is a necessary step so that the device can be placed safely in the hands of authorities.

Now that I know more about these skimmers, I believe I have seen them before, as pieces falling off the keypad have occurred more than once at various retailers, especially the 7-Eleven. I always wondered about that.

Be sure to watch out for these swindle card readers everywhere you shop. Not being vigilant could end up costing you.