Costco Confirms that a Data Skimmer Has Been Ripping Off Customers
Costco reportedly discovered a payment card skimming device at one of its retail stores and has since sent out notification letters informing customers of the potential data theft. Some customers had been sharing suspicions of malicious activity occurring at Costco via social media. The news was first picked up by BleepingComputer, which stated that the notification letters were sent out sometime this month. Costco’s email notifications include confirmation of the existence of the skimmer. It also informs customers that its member records indicate that they swiped their payment card on the affected terminal during the time in which the device was operating.
Costco workers removed the device, notified the authorities, and are currently working with law enforcement to investigate the incident. The skimmer was reportedly discovered during a routine inspection of the store’s PIN pads. Costco has recommended that customers check both credit and bank statements for suspicious transactions. It has offered victims of the skimmer IDX identity theft protection services, which consist of 12 months of credit monitoring, ID theft recovery services, and a $1 million insurance reimbursement policy.