Skimming scam warning: U.S. Secret Service warns Alaskans not to fall victim

ANCHORAGE, Alaska (KTUU) - The U.S. Secret Service is reiterating to all Alaska consumers who use credit or debit cards to be aware of an ongoing skimming scam.

The warning comes after Alaska’s News Source Investigates reported how more Mat-Su area SNAP card accounts have been drained, including some Talkeetna grocery shoppers discovering their Supplemental Nutrition Assistance Program benefit accounts had been drained.

Glen Peterson, a Seattle Field District Secret Service special agent, said the issue is not unique to Alaska.

“We’ve done these operations in Alaska, Florida, Alabama, California and Chicago,” Peterson said. “We just wanted to conduct outreach and make notifications of this issue going on, and also share public awareness on how to prevent yourself from being skimmed and also awareness for those businesses that do provide the service.”

In August, the Secret Service — along with state and local law enforcement agencies — conducted an Alaska outreach operation over payment card skimming and electronic benefit transfer fraud.

Out of more than 1,750 point-of-sale terminals, the Secret Service said two skimming devices were recovered from gas pumps and ATMs they inspected.

With highly sophisticated Eastern European criminal groups behind most of the scams, Peterson said the issue proves challenging to resolve.

“The two things that I can’t say enough is ... that if you notice anything out of place — or if you notice, of course, your funds are getting depleted — report it right away,” Peterson said. “Also limit your risk just by your situational awareness.”

Situational awareness for Peterson means having a good understanding of what warning signs to know.

ATM skimming devices, which Peterson said can be designed to capture payment card data from chips or magnetic stripes, are typically inserted deep inside the ATM’s card reader slot and are usually impossible for users to detect.

For consumers to limit risk, Peterson suggests taking the following steps:

• Utilize ATMs inside of financial institutions, interior bays with security cameras, or closest to the drive-up window as those are more challenging targets for criminals.
• Look for obvious ATM tampering signs, such as inoperable/broken lights, raised PIN pads with loose edges or stickers placed in unusual locations.
• Always shield your PIN entry with another hand to prevent a “pinhole” camera from recording the PIN number.

For specific SNAP card fraud, contacting the Alaska Department of Health is the best path forward to having stolen funds replaced.

Peterson said immediately making a local law enforcement report is also crucial because that’s the only way his department can be looped in, and offer assistance.

“I feel bad, these people are really getting it hard,” Peterson said. “This is stuff they really need, they’re significantly being affected. [These are] benefits that they need to live, if they lose their stuff, they don’t eat. We’re just as concerned on the federal government side, and we’re here to help.”

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