Authorities are intensifying efforts against a national organized crime group implicated in stealing about $18 billion annually through ATM card fraud. Their focus is shifting to assist victims in New York City.
Last year, the US Secret Service, which investigates financial-related crimes and also protects the president, began a significant operation in California and is now collaborating with a newly formed NYPD Task Force to combat these criminals in New York.
“It’s billions of dollars stolen,” noted Secret Service spokesman James Byrne during the announcement of the new initiatives in New York.
The federal government initiated a “flagship operation” after identifying abuses involving government food support programs and electronic benefits transfers that utilized cards.
The skimming devices, placed over ATMs, can remotely capture PIN numbers, while thieves might use small cameras to record users entering their codes.
In New York, these crime rings are predominantly targeting low-income neighborhoods, according to officials.
“They target individuals who are most vulnerable, which makes this problem particularly concerning in urban areas,” said NYPD detective James Lila. “They can install the skimming device quickly, in just a couple of seconds.”
“These devices are primarily designed to exploit EBT cash benefits,” Lila further explained. “The cards lack chip protection, making it easier for criminals to access funds directly from victims, who receive a monthly income through them.”
Authorities estimate that each skimming device can drain about $300,000 and that each victim loses around $1,000.
This week, the Joint Federal Task Force plans to inspect locations in Brooklyn, including bodegas and small shops, for these skimming devices.
“This serves as a warning to the perpetrators,” remarked Patrick Freeney, a special agent for the Secret Service’s New York office. “We are actively pursuing you.”
Michael Peck, another Secret Service agent, emphasized, “We have noticed the substantial sums of money involved.”
“You need to be attentive and look for any suspicious elements like glue or tape,” he advised, highlighting signs of tampering on the machines.
The task force employs advanced technology to track fraudulent ATMs, using data from government agencies, credit card firms, and local police to identify scammers.
“This definitely involves organized crime,” Peck concluded.
