In an era where contactless and chip-based payment technologies dominate, it is both baffling and dangerous that millions of Americans still rely on outdated magnetic stripe EBT cards to access their Supplemental Nutrition Assistance Program (SNAP) benefits. These antiquated cards—similar in design and security to debit cards from the 1990s—have become a goldmine for cybercriminals. As fraud cases surge and low-income families are left without recourse, it’s clear that a technological upgrade is not just overdue—it’s a matter of economic justice.

“It’s an estimate that every skimmer that is recovered is about a MILLION DOLLARS worth of fraud that we prevent,”

Mark Switzer, Special Agent in charge at USSS Memphis Field Office

Credit and debit card skimming is a growing criminal enterprise. According to U.S. Secret Service, skimmer crime rings are responsible for billions in theft each year. This doesn’t just include wealthy card owners. More recently, criminals have turned their sites on the more vulnerable populations relying on government assistance for basic food items. EBT and SNAP benefit cards are being skimmed and funds withdrawn from the lowest economic class of citizen. Skim Scan is shown in this video and has been publicly endorsed by many police departments including Sanford, Williamson, Bedford, Chadbourn, Bradenton and Hennepin as well as U.S. Secret Service.

A Soft Target: Magnetic Stripe SNAP Cards

EBT cards, issued to millions of low-income Americans to help them purchase food and basic necessities, currently function like traditional debit cards—most lacking chip or tap-to-pay capabilities. Instead, they rely on the vulnerable magnetic stripe technology that stores unencrypted Track 2 data. When swiped, this data can be easily intercepted and copied. Combine that with a PIN code, and criminals have everything they need to drain a SNAP account.

The method of attack? Skimming.

How Skimming Works—and Why It’s So Effective

Criminals exploit two common vectors:

1. POS Overlay Skimmers – Fraudsters place fake devices over legitimate point-of-sale (POS) card readers in SNAP-authorized stores. These overlays often include a phony keypad to steal the user’s PIN as it’s typed as well as garnish the card information when they swipe thru the reader.
2. ATM Deep Insert Skimmers – At ATMs dispensing EBT cash assistance, attackers insert tiny internal skimming devices that read card data directly from the magnetic stripe, while a hidden camera or keypad overlay captures the user’s PIN.

Once criminals obtain the Track 2 data and PIN, they clone the card and empty accounts—often before victims even realize they’ve been targeted. Since the federal Electronic Funds Transfer Act (EFTA) and Regulation E exclude EBT users, victims have little to no legal protection or financial recourse.

The Human Cost of Technological Neglect

The fallout is devastating. In March 2025 alone, more than $700,000 in SNAP benefits were stolen from EBT accounts in Rhode Island through skimming attacks. Roughly 1,800 recipients were affected—many of them children, families, and seniors. The consequences ripple outward: food insecurity, lost revenue for local grocers, and increased strain on community food banks and support organizations.

Despite having access to $84 million in unused TANF block grant funds—some of which could reimburse SNAP skimming victims with children—Rhode Island has yet to allocate any of those resources. Nor has the state taken action to convert to more secure chip and tap cards, despite federal matching funds covering half the cost.

An April 2025 InvestigateTV investigation found that fraudsters using skimming methods drained EBT accounts in under 2 minutes after deposits — targeting multiple states in rapid succession.

As one mother described, “They drained my EBT card in two minutes… left me with nothing.” 

Other States Are Stepping Up—Why Isn’t Everyone?

California began issuing chip-enabled EBT cards in January 2025. Maryland, New Jersey, Alabama, and Oklahoma are actively following suit. The cost to fully convert Rhode Island’s cards is estimated at $3.6 million—just $1.8 million from the state budget after federal matching. Yet, the FY2026 budget makes no mention of such an allocation, leaving thousands of vulnerable residents exposed.

The U.S. Department of Agriculture’s Food and Nutrition Service (FNS) has strongly recommended the transition to chip and tap technology. This method encrypts card data during transactions and is virtually immune to traditional skimming techniques.

Technology Exists to Combat Skimming—So Use It

In late May 2025, the U.S. Secret Service led a multi-agency effort in North Carolina, inspecting over 1,700 ATMs and POS terminals. They removed 17 skimmers—a potential $5.1 million loss averted—highlighting EBT cards as prime targets due to their outdated magnetic stripes. While this dragnet was effective, it only involved one state while using a lot of resources. Dedicated tools are required to increase the effectiveness of such efforts to benefit the entire country:

• Skim Swipe: A handheld tool designed to detect rogue POS overlays and compromised payment terminals by analyzing electromagnetic anomalies in real time. Retailers and inspectors can use this device to identify tampered readers before they are used by SNAP recipients.
• Skim Scam: A compact deep-insert skimmer detector developed specifically for ATM technicians and field agents. It can identify the presence of unauthorized devices embedded within card slots—vital for high-risk EBT ATMs.

These tools empower law enforcement, retailers and state agencies to conduct regular sweeps and audits of SNAP payment points, adding a crucial layer of defense while awaiting a system-wide upgrade. 

Time to Act: Protect the Most Vulnerable

The refusal to modernize SNAP EBT cards isn’t just a bureaucratic oversight—it’s a systemic failure with real-world consequences. While wealthier Americans benefit from fraud protection laws and advanced payment tech, low-income families are expected to navigate a minefield of cyberthreats with no armor.

States like Rhode Island and many others have the funds. The technology is proven. The need is urgent.

It’s time to phase out magnetic stripe EBT cards. Children should not go hungry because their state failed to keep up with 21st-century fraud prevention.

What do I do if I am experiencing false positives?

Skim Swipe operates using a 3V coin cell battery. If the battery’s charge drops too low, unit performance may become unpredictable. We recommend to always have a replacement battery (Energizer CR2032 3V battery) handy.

Do Skim Scan of Skim Swipe require any hardware modifications or void any warranties?

No. Skim Scan and Skim Swipe do not require modifications to any hardware do not alter any electronics or mechanics of any card readers. It’s a simple as inserting or swiping a credit card.

What is the suggested operating temperature for the Skim Swipe?

Skim Swipe recommended operating and storage temperature is between 15 to 35°C (59°F to 95°F) for normal operation. If you leave your scanner in a vehicle overnight in the cold for instance, it is recommended to let the unit warm up to normal operating temperature before using it.

Can I replace the battery in my Skim Swipe myself?

Absolutely. You can remove the screws with the supplied #1 screw driver and carefully replace the Energizer CR2032 3V battery with a fresh battery. We recommend Energizer® brand which can be found in any retail or online store.

How often should I change the battery in my Skim Swipe?

The answer to this question varies greatly upon usage. If the unit is used daily then you will likely need to change the battery once a month. If the unit is typically used once a week, then the battery should last over 6 months before requiring replacement. 

Does Skim Swipe work in all card readers?

Skim Scan works in any card reader that requires a swipe of the card to read it. That includes most point-of-sale retail terminals and some ATMs and gas pump payment terminals. We recommend a 2nd swipe after flipping Skim Swipe becasue some newer card swipers can contain magnetic heads (as well as skimmers) on either side of the swiping slot. Simply swipe > flip > swipe to thoroughly check for skimmers on either side. Skim Swipe cannot be dipped or inserted and then pulled back out. For card readers requiring a dipping insertion, choose Skim Scan.