Wall Street Journal: Romanian criminal networks drain U.S. welfare accounts by exploiting outdated card technology

Organized crime networks with Romanian members use skimming devices to steal EBT card data and Americans’ social benefits, according to an investigation published by The Wall Street Journal. The operations are carried out in several states and primarily target SNAP beneficiaries, whose cards still largely use vulnerable magnetic strips.

U.S. investigators say the groups install devices that copy the card number and PIN, then encode the data onto fake cards or carry out fraudulent transactions. The money is converted into cash or cryptocurrency and sent to Romania, where it is invested in real estate, gambling, and luxury goods.

Since 2020, dozens of Romanian citizens have been indicted in skimming cases in cities such as McComb, Laurel, and Portland. More than 50 people with ties to Romania have been charged in Southern California, considered a major center for manufacturing the devices.