A fraud expert has told Fox News Digital that some New York City bodegas and delis are allegedly operating as fronts for organised schemes that skim Electronic Benefits Transfer (EBT) card data, effectively turning welfare-linked debit accounts into cash for criminals. Haywood Talcove, CEO of LexisNexis Risk Solutions Government, said he witnessed the practice first-hand while accompanying the US Secret Service on a fraud operation in the city, describing stores with dusty shelves and expired stock that appeared to exist mainly to facilitate the scam rather than sell goods.

According to Talcove, criminals fit hidden skimming devices to checkout payment terminals to capture EBT card data, often paired with pinhole cameras to record PIN numbers entered by customers. The stolen card details are then used to drain taxpayer-funded benefits intended for low-income households, with proceeds allegedly funding a lucrative criminal enterprise, including purchases such as luxury cars, while the affected stores serve as a front operation rather than genuine retail businesses.