Authorities Launch NYC Crackdown on Credit-Card Skim Rings: 'People Are Coming for You'

In a bid to curb the alarming rate of credit-card skimming in New York City, authorities have launched a joint operation with the NYPD to target national organized-crime rings. The US Secret Service, which investigates financial crimes and protects the president, has been working closely with law enforcement agencies across the country to tackle this lucrative but illicit trade.

According to the US Secret Service, these credit-card-skim rings are responsible for swiping an astonishing $18 billion annually through ATM card-skimming. The agency launched "Operation Flagship" in California last year after detecting significant theft involving government's food-assistance cards, or Electronic Benefits Transfer (EBT).

"It's billions of dollars [stolen] annually across the nation, so that jumps off the page by any metric," said Secret Service Spokesman James Byrne. "We're working closely with local law enforcement to ensure that these perpetrators are brought to justice and that our citizens can feel safe using their ATMs."

The skimming devices used in this operation are ingenious and can be installed on top of an ATM in mere seconds, remotely stealing PIN numbers and other sensitive data from users. In some cases, scammers even install tiny cameras inside the ATMs to capture images of the PIN number on a card.

"They're targeting people who really need the money the most, and that's why this problem is really blowing up in the city," said NYPD Detective James Lilla. "They'll come in, distract the teller, the [skimming] device will go on. It can take 2 to 4 seconds to install the device."

The devices steal an average of $300,000 per skimming device, and $1,000 for each person targeted by the scammers. The joint federal task force is focused on identifying bodegas and small markets in Brooklyn as potential hotspots for these ATMs.

The High-Tech Approach

According to Secret Service Special Agent Patrick Freaney, "It's a message to folks that are doing these crimes: people are coming for you." The task force uses advanced technology to track down the scamming ATMs. By triangulating data from the USDA, credit card companies, and local law enforcement, they can pinpoint the location of these devices.

"You have to know specifically how to feel for them, or you have to look for other triggers," said Secret Service Agent Michael Peck. "Maybe glue, maybe a piece of tape and maybe fake seals." The task force is determined to catch the crooks and put an end to this lucrative but illicit trade.

"It's definitely organized crime that's doing this," added Agent Peck. "We're working tirelessly to ensure that our citizens can use their ATMs without fear of being scammed."