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Ohio Investigative Unit Issues Urgent Warning About EBT Card Skimming Fraud Targeting Retailers

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COLUMBUS, OH – The Ohio Investigative Unit (OIU) is warning grocery and convenience store owners statewide about a growing threat of Electronic Benefits Transfer (EBT) card skimming fraud, with criminal organizations specifically targeting stores that accept Supplemental Nutrition Assistance Program (SNAP) benefits.

Skimming devices are being placed on point-of-sale (POS) terminals at SNAP-authorized retail locations, designed to capture EBT card data. These devices focus on older cards that rely on magnetic stripes, which are vulnerable to being skimmed. Modern chip and tap-to-pay technology is not as susceptible to this type of fraud.

The most common skimming method involves placing an overlay device over the keypad and magnetic swipe reader on POS systems. The skimmers collect sensitive card information, including Personal Identification Numbers (PINs), from unsuspecting SNAP recipients, allowing criminals to access their benefits.

Preventative Measures for Retailers

The OIU urges retailers to take immediate precautions to safeguard their businesses and customers. One of the recommended strategies is using seals on payment devices, which would need to be removed or tampered with to install a skimmer. These seals should be placed near the numeric pad for maximum visibility. Additionally, installing protective guards on POS systems can help prevent skimming devices from being attached.

Retailers are also advised to conduct daily inspections of their payment terminals, checking for signs of tampering at the beginning and end of each shift. Some stores, such as Target, have implemented low-tech detection methods like the “EasySweep” skimmer detector, which can help identify fraudulent devices.

What to Do if a Skimmer Is Found

If a retailer discovers a skimming device, they should take several steps to preserve evidence and assist law enforcement. First, the device should be photographed in place. Retailers should immediately contact local law enforcement, especially if there is concern that the device could be transmitting stolen data. If the device needs to be removed before law enforcement arrives, it should be handled with gloves and placed in a paper bag to maintain evidence integrity.

Retailers should also document the date, time, and exact location where the skimmer was discovered, which is particularly important for stores with multiple POS systems. Reviewing security footage can help determine when the skimmer was installed and provide valuable information for investigators.

Collaborative Effort to Combat Fraud

The OIU is collaborating with the USDA Office of Inspector General, the Ohio Department of Job and Family Services, and local law enforcement agencies to combat the growing problem of EBT card skimming. Additionally, industry groups such as the Ohio Grocers Association and the Ohio Retail Merchants Association are working to spread this critical information to their members.

Recent Skimming Incident in Ross County

A recent incident highlights the increasing threat of skimming devices in Ohio. On July 14, 2024, a skimmer was discovered at the Save A Lot store located at 1700 Western Ave. in Ross County. The store supervisor found the device during a routine check of the registers and waited a couple of days to report it to inform employees about the situation.

The skimmer was collected and will be sent to the Bureau of Criminal Investigation (BCI) for further testing. Investigators from the Washington Court House Police Department are now involved, sharing information about similar incidents in Newark and Columbus. To date, 10 skimming devices have been found at grocery stores across the area, prompting an ongoing investigation to identify the suspects and their vehicle.

Authorities are asking anyone with information about the fraud to contact the Ross County Sheriff’s Office. This case serves as a reminder for businesses and individuals to stay vigilant and report any suspicious activity to help prevent fraud and identity theft.

Contact Information

Retailers needing further guidance or wishing to report suspicious activity are encouraged to contact their local Ohio Investigative Unit District Office or local law enforcement for support.

By staying proactive, Ohio retailers can help protect their customers and prevent the rising threat of EBT card fraud.