HOUSTON – More Houston-area businesses are checking credit card terminals for signs of tampering after the U.S. Secret Service said agents found 14 illegal skimming devices during a recent two-day operation across Harris County.
Federal agents inspected 3,175 point-of-sale terminals, gas pumps and ATMs at 372 businesses during the May 13-14 operation, according to the Secret Service. Investigators estimate the operation prevented about $14.5 million in potential losses to consumers.
Skimming devices are designed to steal debit and credit card information. The devices are often placed over or inside legitimate card readers and can capture card numbers and PINs without customers realizing it.
At a Dairy Queen in Houston’s Spring Branch area, owner Nasir Zulfiqar said employees routinely inspect payment terminals throughout the day because the devices can be installed in seconds.
“The customers have full access to the machine, and we have be aware if they’re not tampering with it,” Zulfiqar said.
Zulfiqar said workers inspect the machines at least twice daily by checking for loose parts, unusual seams or overlays attached to the terminal.
“We kind of just turn it over and make sure nothing’s wrong with them,” he said.
He said there is currently no law requiring merchants to inspect their payment terminals for skimming devices, but his business does it voluntarily to protect customers and maintain trust.
The FBI said skimming costs financial institutions and consumers more than $1 billion annually nationwide.
According to the agency, criminals commonly target gas pumps, ATMs and point-of-sale terminals inside stores. Some skimmers fit over existing card readers like a sleeve, while others are installed internally and may not be visible to customers.
The FBI said fraudsters can install some devices within seconds, sometimes by distracting employees while attaching the skimmer to a payment terminal.
Federal officials said consumers should inspect card readers before using them and look for anything loose, crooked, damaged or scratched. Customers are also encouraged to use tap-to-pay or chip-enabled cards whenever possible.
The FBI also recommends paying inside gas stations instead of at the pump when possible and covering keypads while entering PIN numbers.
Zulfiqar said he personally avoids paying at gas pumps and prefers using mobile payment options instead of swiping cards.
“I always walk inside and pay, and I always try to pay with the phone,” he said.
The Secret Service operation included assistance from Homeland Security Investigations, Houston police, the Texas Financial Crimes Intelligence Center and the Texas Department of Licensing and Regulation.
Officials said the operation was conducted partly in preparation for the 2026 FIFA World Cup to help protect visitors and residents from financial fraud.
Consumers who find suspected skimming devices are encouraged to report them to local law enforcement and financial institutions immediately.