EBT fraud, payment card skimming operation conducted in Alaska

For the first time ever, the U.S. Secret Service conducted an outreach operation in the State of Alaska for payment card skimming and Electronic Benefit Transfer (EBT) fraud.

“In 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, whose area of responsibility includes Alaska. “Our goal is to locate and remove skimming devices before people’s credit card data can fall into the hands of criminals.”

During the outreach operation held Aug. 1-2 in several Alaskan cities, more than 1,750 point-of-sale (POS) terminals, gas pumps, and ATMs were inspected. Two skimming devices were recovered during the operation, according to the Secret Service.

The Secret Service worked alongside state and local law enforcement partners, including personnel from the Anchorage Police Department, the U.S. Attorney’s Office in 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 about EBT fraud and card skimming to help businesses better identify the warning signs of illegal skimming devices in their POS terminals, gas pumps, and ATMs.

“The Anchorage Police Department is thankful for the collaboration with the U.S. Secret Service and other state agencies to safeguard our retail businesses and citizens from the increasing threat of skimming operations,” Anchorage Police Chief Sean Case said. “This crime affects all consumers, and we appreciate the effort the U.S. Secret Service is providing to help local and state law enforcement agencies in identifying and removing these illegal skimming devices.”

EBT information and other payment card numbers are stolen when criminals install an illegal skimming device to the POS terminal in order to capture card information. They then encode the stolen data onto another card with a magnetic strip, such as a gift card or hotel key, according to the Secret Service, which estimates that skimming costs consumers and financial institutions more than $1 billion a year.

“The USDA OIG is dedicated to upholding the integrity of the EBT card program,” said USDA OIG Special Agent in Charge Shawn Dionida. “We thank the U.S. Attorney’s Office, U.S. Secret Service, and local law enforcement partners on our joint effort to combat skimming operations and associated EBT fraud in Alaska.

“We will work diligently with our partner agencies to hold conspirators accountable for stealing EBT card information from families who rely on these benefits to survive,” Dionida added.

Alaska State Troopers Col. Maurice Hughes said that credit card, ATM card, and EBT card skimming and fraud is a growing issue across the state, saying it’s something that State Troopers regularly encounter during routine investigations.

Nationwide, law enforcement agencies also have seen an increase in skimming over the past 18 months, particularly targeting EBT cards.

“With the rise in EBT fraud statewide, it’s crucial to raise awareness about skimming and use our law enforcement tools to protect Alaskans,” said U.S. Attorney Lane Tucker for the District of Alaska.

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