The U.S. Secret Service, working with local law enforcement partners, prevented an estimated $14.5 million in losses to Houston-area consumers this week as part of a two-day outreach operation targeting illegal payment card skimming and Electronic Benefit Transfer fraud.
Law enforcement personnel visited 372 area businesses in Harris County during the operation conducted May 13-14. A total of 3,175 point-of-sale terminals, gas pumps and ATMs were inspected during the operation.
Teams also distributed educational materials about credit card skimming to help businesses identify illegal skimming devices in their point-of-sale terminals, gas pumps and ATMs.
“Card skimming threatens the financial security of individuals and families across our community. I am proud of our team’s dedication to identifying and removing these devices before they can cause harm, and for their education efforts. While we are always striving to protect the public, this operation was conducted ahead of the World Cup to ensure that international visitors are not preyed upon while visiting the United States. Our ongoing collaboration with law enforcement partners is crucial in preventing this type of fraud and protecting those who rely on these financial resources,” said Acting Special Agent in Charge Thomas Rizza of the U.S. Secret Service – Houston Field Office.
Personnel from Homeland Security Investigations (HSI), Houston Police Department, Santa Fe Police Department, Texas Financial Crimes Intelligence Center (FCIC), and Texas Department of Licensing and Regulation assisted in the operation.
“We know how devastating card skimming can be for innocent residents and families, and that’s why we take these cases so seriously. It’s a team effort-our agents, analysts, law enforcement partners, and other agencies all play a part. Together, we’re not just tracking down criminals and illegal devices, we’re making sure victims and businesses get the support they need and that these crimes don’t go unchecked,” Assistant Special Agent in Charge Michael Peck of the Secret Service Criminal Investigative Division said.
“HSI Houston is committed to protecting the financial security of our community, especially as we prepare for the upcoming FIFA World Cup games,” Erin Burke, Acting Special Agent in Charge HSI Houston, said. “Through close collaboration with our law enforcement partners, we are disrupting criminal schemes and ensuring Houston remains a safe place for residents and visitors alike. This operation demonstrates our dedication to safeguarding consumers and reinforcing public trust during major international events.”
“The Texas Financial Crimes Intelligence Center exists to protect Texans from the financial predators who target their everyday transactions. Skimmer suspects intentionally target point-of-sale terminals in areas with high volumes of EBT transactions victimizing vulnerable families who depend on those benefits to eat. Make no mistake, EBT fraud is predatory. These suspects deliberately steal food benefits from the families who need them most, exploiting hardship for profit. That is unconscionable. This operation is a direct expression of FCIC’s daily mission to stop them. By working alongside our law enforcement partners, we didn’t just remove illegal devices, we closed the door on millions of dollars in potential losses and defended the people who could least afford to lose a single dollar. That is intelligence-driven prevention at work,” Jeff Roberts, Captain of the Texas Financial Crimes Intelligence Center, said.
“This type of operation is impactful not just for the immediate crime prevention accomplished, but for the public awareness and education it provides. We are grateful for the opportunity to participate in this federal task force, leveraging our combined resources to more effectively combat financial crimes,” Sergeant Jessica Hyde of the Houston Police Department Property & Financial Crimes USSS Cyber Fraud Task Force said.
This effort follows a series of similar operations conducted by U.S. Secret Service Special Agents and Investigative Analysts and law enforcement partners nationwide.
Criminals often steal payment card numbers by installing illegal skimming devices on ATMs, gas pumps and merchant point-of-sale terminals. Scammers use skimming technology to capture card information from credit cards and encode that data onto another card with a magnetic strip.
It is estimated that skimming costs financial institutions and consumers more than $1 billion each year.
There are several precautions consumers can take to protect themselves:
- Inspect ATMs, point-of-sale terminals and other card readers. Look for anything loose, crooked, damaged, or scratched. Do not use a card reader if anything appears unusual.
- Whenever possible, use tap-to-pay technology or use debit and credit cards with chip technology.
- If using a debit card at a gas station, run it as a credit card to avoid entering a PIN number. If that is not an option, consumers should use their hand to hide their PIN to block scammers who may be using tiny pinhole cameras above the keypad area to record entries. Use ATMs in a well-lit, indoor location, which are less vulnerable targets.
- Be alert for skimming devices in tourist areas, which are popular targets.