The Secret Service does not just protect the president of the United States; it also protects New Yorkers who are scammed when they swipe an electronic benefit card (EBT) at an unsuspecting device.
The Secret Service partnered on Wednesday with the NYPD and the USDA for a three-day takedown dubbed Operation Flagship. According to Special Agent Patrick Freaney, who leads the Secret Service’s New York field office, the initiative targets illegal debit card and EBT machines designed to siphon funds from users.
Freaney says the operation is placing an extra emphasis on busting those stealing money directly from those who need it most with EBT.
“Most people know us for the protection aspect, but we were formed to combat counterfeit currency for the Department of the Treasury. And what we’ve done since our beginning and currently is follow the money,” Freaney said. “It’s a message to the community that we see the fraud that’s going on with the SNAP benefits and EBT benefits. It’s also a message to the folks that are doing these crimes: People are coming for you.”
EBT scams target the most vulnerable
Called skimmers, crooks alter the machines so they immediately withdraw money from an EBT card when it is swiped, potentially stealing hundreds of dollars that a parent could need to purchase diapers and food for their children. Authorities say one group could have multiple devices running and draining cash at one time.
Unlike bank cards, it is not always so simple to alert EBT card theft as fraud, leaving the public without the money they desperately need.
The Secret Service has developed technology to trace these skimmers.
Inside their Brooklyn headquarters, agents sit pouring over computers, working to locate where these machines have been established. On Wednesday, Operation Flagship focused on Brooklyn and Staten Island, with the coming days set to spread out further. However, Special Agent Michael Peck says this is not a local issue in the Big Apple but a massive problem they contend with across the country.
“Transnational organized crime groups are specifically targeting our benefits programs here to the tune of $18 billion a year,” Peck said. “These aren’t just dollars we’re losing. These are victims. These are vulnerable communities. It is the poor, the elderly. These are people who need this money to survive, and it’s being specifically targeted by these groups.”
amNewYork rode along with the task force as they looked to put an end to these skimmers.
While agents say that not all stores are aware of the tech being used to defraud their customers, they believe some owners help orchestrate it.
Agents from the Secret Service, the NYPD, and the USDA entered a bodega in Bushwick on Wednesday afternoon, located at 1173 Broadway. Inside, authorities had tracked that the business was using a EBT card reader despite not having a license to do so and were allegedly stealing the funds.
When confronted, the clerk denied knowing about the device despite it being in plain view on the front desk.
“Do you close your eyes when you use it?” one agent asked.
Those on the scene tested each card reader with an EBT card until they found the phony device and collected it for evidence. While no arrests were made, law enforcement says that they believe those running the store had knowledge of the skimmer, which could lead to charges in the future as the investigation progresses.
According to Detective Daniel Alessandrino of the NYPD’s Financial Crimes Task Force, the store was using a “clone device” connected to another business in the borough.
“This store was using a clone device, which is a device that is cloned that belongs to another store, so they could process these benefit EBT cards to steal the funds from actual victims,” Alessandrino said. “The reason they do that is so they can steal these benefit funds that are being provided to people who need the money the most.”
Not far away, agents found a skimmer device inside a Walgreens located at 755 Broadway, after which they immediately took it as evidence.
Throughout the May 21 operation, Flagship confiscated 14 devices, including three clone devices. Special Agent Freaney said that this is just the beginning, and they will continue to pursue justice for those who are being victimized.
“What you’re seeing today is people who are victimizing the most vulnerable in our community, stealing literally money that’s meant for the food that people are supposed to consume, stealing the food right out of their mouths,” Freaney said. “So for us, it has and always will be about following the money.”
