Thieves Stole $360M From America's Poorest Families — Exploiting Technology Invented in the 1960s

A hidden device attached to a checkout machine can wipe out the money a family depends on to buy food for the month. Across the US, criminals are exploiting outdated payment technology to steal government benefits loaded onto electronic benefit transfer (EBT) cards. The thefts can leave SNAP recipients without money for groceries and have prompted states to accelerate the rollout of chip and contactless EBT cards.

In March, prosecutors say a twice-deported Romanian national entered a 7-Eleven in Toledo, Ohio, and secretly attached a skimming device to a payment terminal. The alleged target was not a bank account, but food assistance held on government-issued EBT cards. The case is part of a wider investigation into organised crime groups accused of stealing public benefits through card skimming, according to a 20 September investigation by The Wall Street Journal.

$360 Million in Replaced Benefits

The full scale of the theft remains unknown. There are no recent official estimates of the total amount stolen. The US Department of Agriculture said the federal government replaced $360 million in benefits reported stolen from 754,000 households between October 2022 and December 2024, before the federal replacement authority ended.

That figure does not represent every benefit stolen. It covers losses reported by households that received federal reimbursement. Agriculture Department Inspector General John Walk said the figures came from people who reported their losses, meaning some thefts may never have been included.

Why Old Cards Are Vulnerable

The criminals are exploiting magnetic stripes, a payment technology developed in the 1960s. When an EBT card is swiped, information stored on its magnetic stripe can be copied by a skimmer placed over a legitimate card reader. A keypad overlay can also capture the user's PIN.

Criminals can transfer the stolen information to another card. Investigators say cloned cards can then be used to withdraw cash or make purchases with the victim's benefits. Modern debit and credit cards increasingly use embedded chips and contactless payments. EBT cards have been slower to make the transition. Alabama, California, Maryland, Massachusetts, Michigan, New Jersey, and Oklahoma have issued chip-enabled EBT cards, while other states are working towards upgrades.

A Network Built Around Skimming

US law-enforcement officials say Romanian organised crime groups have become prominent in benefits-card skimming. Since 2020, dozens of Romanian nationals have faced prosecution in cities including McComb, Mississippi; Laurel, Maryland; and Portland, Oregon. More than 50 people with Romanian ties have also been charged in Southern California.

Investigators describe networks in which different members allegedly handle different tasks. Some install skimmers, while others build the devices or process stolen card information. In the Toledo investigation, prosecutors allege that suspects photographed payment terminals in Ohio and sent the images to California, where customised skimmers were allegedly produced.

Four men arrested in the case have pleaded not guilty. A lawyer for one defendant said his client maintains his innocence. The alleged leader has been charged but has not been arrested.

Families Face the Loss

For SNAP recipients, the consequences can be immediate. A stolen benefit balance can leave a household without money for groceries until its next monthly allocation. Families unable to recover the funds may have to seek help from relatives or food pantries.

The federal government stopped replacing stolen SNAP benefits in December 2024, leaving states to determine what assistance they will provide. California has invested $76.5 million in federal and state funds to distribute replacement chip-and-tap cards. Yet many retailers still do not have compatible terminals, and swipe transactions remain common.

Ohio has added card-locking features and passed legislation requiring chip cards for benefits. Matt Damschroder, who directs Ohio's SNAP programme, said the transition will cost at least $20 million and could take three years.

Criminals Keep Adapting

The move towards chip technology has not eliminated the threat. Investigators have found more sophisticated skimmers, including devices fitted with Bluetooth technology that can transmit stolen information remotely.

The US Secret Service has also conducted sweeps to locate illegal devices. The agency said 70 sweeps had recovered 694 skimmers and prevented an estimated $720 million in fraud. The technology behind the vulnerability may be more than half a century old. The criminal methods exploiting it have continued to evolve.

For families relying on SNAP, the problem is more than an outdated card system. A concealed device at a checkout can turn a routine purchase into the loss of money intended for food.