Scammers Drain $17 Million from NYC Summer Youth Program Debit Cards

Over a three-day period in July, scammers exploited a vulnerability in New York City-issued debit cards intended for youthful workers, resulting in illegal withdrawals totaling approximately $17 million. The cards, designed to provide weekly earnings for participants in the Summer Youth Employment Program, were manipulated to access significantly larger sums—up to $40,000 per ATM transaction—far exceeding the usual pay scale of a few hundred dollars.

During the incidents, ATMs across the city were flooded with large withdrawals, with some cards being used repeatedly to extract thousands of dollars. Statements from ATM provider Youserf Mubairrez revealed that some cards were used multiple times in quick succession—sometimes up to 200 transactions—giving scammers access to massive cash amounts. Records from ATM World Corp. indicate individual cards were used to withdraw as much as $43,000, despite a $200 limit per transaction, due to the absence of a cap on the number of withdrawals.

Authorities and investigators from the NYPD and Department of Youth and Community Development are examining how the scam was carried out, aiming to identify those involved and the scope of affected cards. The incident has raised concerns about security flaws, particularly as the program is the largest of its kind in the country, serving 100,000 participants, many from underprivileged backgrounds. Typically, youth without bank accounts receive wages through these prepaid cards, with about 30,000 individuals paid via cards this year.

While city officials assured that taxpayer money remains unaffected by these fraudulent withdrawals, the full extent of the financial impact and the origins of the scam are still under investigation. The scam has also been highlighted in social media videos where teenagers and adults openly shared tips on how to exploit the cards, fueling warnings to be cautious of scams.