Michael's Stores Inc. approximately 80 stores were targeted by thieves using "Skimmers."

Michaels stores in 20 states whose bank accounts were looted after they had used their bank debit cards at the retailer.

Thieves tampered with the retailer's debit-card processing equipment at about 80 stores from Massachusetts to Washington, according to the chain's corporate parent, Michaels Stores Inc.

The thefts apparently involved the use of electronic devices called skimmers that allowed crooks to record information from shoppers' debit cards and steal their personal identification numbers, or PINs.

The Irving, Texas, company said Wednesday that it uncovered almost 90 improperly altered debit-card processing devices called PIN

Thieves were able to use the stolen data to create duplicate debit cards and use them at automated teller machines to steal money directly from victims' bank accounts, primarily in denominations of $500.

Michaels Stores said it first became aware of the fraud scheme in early May after police departments around Chicago began receiving reports from consumers alleging their bank accounts had been looted, primarily from thieves using ATMs in California.

The company said it is working with federal and state law-enforcement authorities, and is replacing all of its 7,200 card-processing terminals as a precaution. The U.S. Secret Service, which investigates financial fraud, said that it is investigating the Michaels incident.

Fraud involving debit cards, PIN numbers and card processing equipment has increased fivefold over the past five years, said Avivah Litan, a payment-fraud analyst at Gartner Research. While gangs initially targeted bank ATMs, such schemes have expanded to include card processors at gasoline pumps and now at retail chains.

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