Protecting Ohio Stores and SNAP Customers from EBT Card Skimming Fraud

The Ohio Investigative Unit (OIU) is alerting small and medium-sized grocery and convenience stores across the state about a rising threat of Electronic Benefits Transfer (EBT) card skimming fraud targeting Supplemental Nutrition Assistance Program (SNAP) recipients.
​
Criminal organizations are increasingly

deploying skimming devices at SNAP-authorized retail locations to steal EBT card data. These devices primarily exploit older magnetic stripe technology, as opposed to chip-enabled cards or tap-to-pay systems, making them an attractive target for fraudsters.

How Skimming Works
The most common method involves overlay devices placed on point-of-sale (POS) systems, covering keypads and magnetic swipe readers. These devices are designed to capture both card data and Personal Identification Numbers (PINs) from unsuspecting users, compromising the benefits of SNAP recipients.

Preventative Measures for Retailers
The OIU recommends several strategies to help retailers safeguard their payment terminals and protect their customers:

• Seal Usage: Place visible seals on payment devices, particularly near numeric keypads. These seals make tampering more noticeable.
• Protective Guards: Install guards to prevent scammers from placing skimming devices over POS systems.
• Daily Inspections: Conduct routine inspections at the beginning or end of each shift to detect tampering.
• Innovative Detection Tools: Consider tools like Target’s EasySweep Skimmer Detector, a low-tech solution for identifying suspicious devices.

Responding to a Skimmer Discovery
If a skimming device is discovered, retailers should:

1. Photograph the Device: Capture images of the device in its original position.
2. Contact Authorities: Notify local law enforcement immediately and follow their guidance.
3. Preserve Evidence: Avoid removing the device unless necessary; if removed, handle with gloves and store it in a paper bag.
4. Document the Discovery: Record the date, time, and specific location of the device.
5. Review Security Footage: Preserve video evidence to help identify when the device was placed and potential suspects.

Collaborative Efforts to Combat Fraud
The OIU is working closely with the USDA Office of Inspector General, the Ohio Department of Job and Family Services, and local law enforcement to address this escalating issue. Industry organizations, such as the Ohio Grocers Association and Ohio Retail Merchants Association, are also partnering to share best practices and preventative strategies with their members.

Reporting and Support
Retailers are encouraged to stay vigilant and report suspicious activities to their local Ohio Investigative Unit District Office or local law enforcement. By taking proactive measures, businesses can help protect both their operations and the SNAP recipients who rely on their services.

For more information and resources, contact the Ohio Investigative Unit or visit their website.