Secret Service Busts Card Skimmers, Stops $3.1M Fraud Across Alabama

The U.S. Secret Service disrupted a local skimming ring in the Mobile, Alabama area, seizing three illegal devices and stopping an estimated $3.1 million in potential fraud during a focused multiagency operation.

The enforcement action removed illegal skimming devices in Chickasaw, Mobile and Spanish Fort, targeting threats at ATMs, gas pumps and merchant point-of-sale terminals. Authorities say the three devices were discovered during a concentrated two-day sweep that also included outreach to local businesses. The agency calculates the operation prevented an estimated potential loss of $3.1 million.

Teams from the Secret Service worked alongside federal, state and local law enforcement to inspect machines and educate merchants about Electronic Benefit Transfer fraud and skimming risks. Law enforcement personnel visited nearly 400 businesses in and around Mobile, checking ATMs, gas pumps and point-of-sale terminals for tampering. Ten teams of Secret Service analysts partnered with local and state agencies to coordinate the visits and removals.

The outreach included distribution of educational materials to help business owners spot illegal skimming devices and other signs of payment-card tampering. Investigators emphasized common tactics used by criminals so merchants can identify suspicious add-ons, loose fixtures or hidden electronics in card readers. The goal was both to remove devices and to leave behind practical guidance that reduces repeat incidents.

This operation involved multiple partners: the U.S. Secret Service, Mobile Police Department, Mobile County Sheriff’s Office, Baldwin County Sheriff’s Office, Alabama Department of Insurance – State Fire Marshal, Fairhope Police Department and the Alabama Department of Human Resources. Personnel from Homeland Security Investigations, U.S. Department of Treasury – Office of Inspector General and the U.S. Department of Agriculture – Office of Inspector General also took part. Those combined forces allowed a broader sweep and faster response when devices were located.

“If we can take these skimmers out and we can educate people to check, then we can make a big difference here locally. We can help the people who live here, and we can stop some of the fraud that’s happening with these skimmers,” said Resident Agent in Charge Jennifer Nissen, of the Mobile Resident Office. “Thank you to all our Federal, state and local partners who helped in this effort. It’s a big outreach for us and we really want to push that education and let people know and be aware of what’s happening.”

These local sweeps are part of a wider, ongoing effort. Since April 2024 the Secret Service has conducted nationwide operations to locate and seize skimming devices installed by criminals. In 2025, law enforcement removed more than 400 illegal skimming devices during these efforts, which the agency says prevented an estimated potential fraud loss of more than $428 million.

The agency reports that so far this year it has visited roughly 1,800 businesses and inspected 11,783 machines, uncovering 44 skimmers and preventing more than $45.8 million in fraudulent losses. Those figures illustrate how targeted inspections can blunt large-scale schemes that would otherwise drain assistance and private accounts. Officials indicate the multi-jurisdictional approach may be used as a model for other regions facing concentrated EBT fraud and skimming problems.

Criminals often steal EBT and other payment card numbers by installing illegal skimming devices on ATMs, gas pumps and merchant terminals, then encoding captured data onto another magnetic-strip card. Scammers can time withdrawals and purchases around monthly government assistance deposits, hitting the accounts when funds arrive. It is estimated that skimming costs financial institutions and consumers more than $1 billion each year.

Law enforcement has seen a rise in skimming incidents nationwide, with many schemes specifically targeting EBT cards and the communities that rely on them. Because benefits are deposited on a predictable schedule, criminals who obtain card data can make coordinated withdrawals or purchases shortly after deposits hit accounts. That pattern makes timely detection and prevention crucial for protecting vulnerable households.

The Secret Service recommends consumers avoid ATMs and card readers that look damaged or altered, use tap-to-pay where possible, and prefer debit or credit cards equipped with chips to reduce cloning risk. When entering a PIN, customers should shield the keypad to block any hidden cameras or onlookers trying to capture the code. Those simple habits, paired with vigilant merchant inspections, help reduce the chances that skimming devices will succeed.

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