Recently, there have been frequent incidents of food stamp theft in the South Brooklyn area, where some elderly people have had their food stamp balances quickly emptied after swiping their cards at certain businesses. This has led to a lack of trust from the elderly towards these businesses. In response to these issues, the Hwakang Association, in collaboration with the police, community representatives, and community organizations, held a seminar on “Preventing Damage to Business Reputation and Preventing Food Stamp Theft” on the 9th to jointly curb criminal activities, enhance awareness of prevention, and restore the damaged reputation of businesses.
Yesterday (January 9th), Detective James Lilla from the Financial Crimes Task Force introduced to businesses and elderly individuals common devices and methods used by criminals to steal data, as well as provided practical prevention advice.
Detective Lilla explained that a common method of food stamp data theft is through reading the information on the card’s magnetic stripe, storing the data, and repeatedly stealing it. The most common way is for thieves to install skimming devices (skimmers) on ATMs or card readers in stores to steal card information. These devices typically blend in with the card reader and are difficult to detect. Additionally, they may use additional devices such as PIN keypad overlays and pinhole cameras surrounding ATMs to capture your PIN.
Thieves typically operate in teams of two to three people. One person distracts the cashier’s attention, such as pretending to be a customer buying a large roll of toilet paper to block the cashier’s view, or asking questions to distract. Another person watches out for others, while the third person quickly installs the device on the card reader. Detective Lilla mentioned that the “installation process of these devices can be completed in just a few seconds.”
These devices can read and store all card data, transmitting the data to the thief’s phone via Bluetooth. While data transmission requires the thief to be near the device, the device’s battery can last up to 14 days. During this period, the thief can come back daily to download the data, then leave, and return to retrieve the device when the battery is depleted on the 14th day.
So how can one prevent thieves from tampering with card readers? Detective Lilla suggested that businesses should regularly check card readers and place a discreet mark on them, such as hiding a sticker or a dot that only the cashier would notice to identify if a skimmer has been placed.
As a customer, it is important to be watchful for any irregularities or looseness in card readers: if the terminal equipment is uneven, loose, or has visible seams, it should raise concerns. Despite skimming devices coming in various shapes and sizes, they are all attached to the card reader using double-sided tape, as the thieves need to come back to retrieve it after 14 days and cannot have it stuck permanently. The double-sided tape is just used for fixation and can be removed after 14 days.
Detective Lilla reminded businesses and cardholders to pay attention to the following points: (1) Check the card reader: lightly tug or shake the card reader before use to look for any looseness or suspicious magnetic stripe readers, PIN covers, etc. If anything loose or unusual is found, it should be avoided. If a customer is suspicious of a card reader, they can opt for another terminal or cashier for the transaction; (2) Cover the PIN keypad: when entering your PIN, cover the keypad with your hand, and regularly change your PIN.
Since 2013, Detective Lilla has been investigating such cases. These theft issues emerged before the pandemic, and particularly increased after 2018, becoming more severe post-pandemic.
When an attendee asked, “Why do thieves seem smarter than us, and we can’t beat them?” Detective Lilla responded that it’s not that thieves are smarter, but rather a matter of quantity. “This city has thousands of card readers. Think about how many shops have card readers, then multiply that number by the size of the entire city or even the entire state.”
He explained that the disbursement methods for cash aid vary by state. For instance, in California, EBT welfare funds are typically distributed en masse on the first day of each month, providing law enforcement with a clear window of action to set up surveillance points, observe suspects entering and exiting stores, and make arrests. However, in New York, funds are disbursed incrementally throughout the month every day. This makes law enforcement actions akin to finding a needle in a haystack, unable to plan comprehensively for specific times. He also suggested that New York State should consider introducing chip technology into EBT cards to replace the current 1960s magnetic stripe design.
Additionally, he emphasized another crucial issue: if thieves have obtained card information and the card number hasn’t been changed, the thefts may persist. For example, thieves could continue using the same card information for fraudulent transactions in the following months. Therefore, regularly changing passwords and safeguarding card security are vital. He also advised businesses that if they discover skimming devices, they should immediately report it to the authorities and maintain the scene intact without touching the device internally to avoid mixing their fingerprints with the thief’s and interfering with the investigation.
State Assemblyman Michael Novakhov from the 45th district suggested that cardholders should spend all their funds at the store immediately after the money is deposited to prevent part of the balance from being stolen, stating, “I mean, we all have refrigerators, can freeze food, which is better than having money stolen, right?”
To safeguard your cards, a new feature called EBT Freeze Card has been recently introduced by the government. The steps are as follows: log in to the newly launched official ebtEDGE app or website, securely access your account, then click on “Freeze Card” in account services, confirm the operation, and unfreeze it when needed for transactions, then refreeze it after completing the transaction. You can also use the ebtEDGE app or visit ebtEDGE.com to block online or out-of-state transactions.
Detective Lilla also recommended that cardholders download and use applications that allow them to lock their cards and unlock them temporarily when needed.
In conclusion, these steps and measures are crucial in combating food stamp theft and protecting the finances and personal information of cardholders, as well as maintaining the reputation and trustworthiness of businesses in the community.