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Costco reveals data breach due to card skimming

Costco warned its customers that they may be victims of a data breach. (Image: Omar Abascal via Unsplash)
Costco warned its customers that they may be victims of a data breach. (Image: Omar Abascal via Unsplash)
Costco has alerted customers who recently shopped at one of its locations to a data breach that may have stolen their card payment details. The company sent letters to its members who were probable victims and urged them to observe their recent card transactions closely. The police are currently investigating the incident.

Costco Wholesale Corporation has distributed letters, which alerted its shoppers that their credit card details may have been compromised. The corporation uncovered a skimming device during a standard security sweep in one of its stores.

Costco maintains 737 locations worldwide, spanning Asia, Europe, North America, and South America. The corporation reported that a skimming device was discovered at one of its Canadian warehouses and the company subsequently informed police officials who are currently monitoring the situation.

Consumers who were potential victims of the breach received letters, which stated that Costco's member records showed that the customer paid for goods at the affected terminal. Alarmingly, the skimming device may have stolen the payment information of bank cards such as the card number, name, expiry date and CVV.

The company also warned members to look out for unscrupulous payments in their recent bank statements and to urgently notify their financial institution if an irregular transaction was made.

Furthermore, Costco is giving impacted members the option to sign up for IDX's identity protection service at no cost. IDX offers 12 months of credit card monitoring and recovery in case of identity theft as well as insurance reimbursement.

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Aleem Ali, 2021-11-14 (Update: 2021-11-16)