A group of customers who purchased Costco digital gift cards have reported that their cards were emptied of funds under suspicious circumstances. The retail giant has not provided much information on the matter, leaving affected customers like Shelly Xu from Perth, Ontario, struggling to reclaim their money. Xu noticed around $200 missing from her Costco Shop card in late June, which came as a shock when she found the balance at zero. She heavily relies on Shop cards as Costco does not accept her Visa credit card.
Despite spending significant time on the phone and at her local Costco store, Xu has not received a resolution even after a month since the incident. She expressed frustration at the lack of guidance from Costco and resorted to seeking information from online forums where others shared similar experiences. Numerous complaints on social media platforms and Costco’s online site revealed cases of disappearing funds from Shop cards.
CBC News interviewed five affected customers from British Columbia and Ontario who discovered between $150 and $1,000 missing from their digital Shop cards in June or July. These customers criticized Costco for the lack of transparency and assistance in addressing the issue. While three customers eventually received refunds, one was denied, and Xu is still awaiting a resolution.
Costco has not responded to inquiries about the incident. Consumer advocate Daniel Tsai criticized the retailer for not publicly addressing the Shop card problem, emphasizing the importance of maintaining customer trust. The affected customers received letters from Costco suggesting that unauthorized individuals might have exploited a limited number of digital Shop cards, leading to the temporary suspension of online sales of these cards.
Gift card fraud is a significant issue in Canada, with victims often left to resolve matters with the issuing company. Ritesh Kotak, a cybersecurity and tech analyst, highlighted the need for improved protections and remedies for fraud victims. Costco customers who faced unauthorized transactions were advised to secure their email accounts, hinting at potential email compromises.
There are suspicions that scammers may have accessed Costco customers’ email accounts or manipulated the barcodes on Shop cards to commit fraud. Shop card users shared concerns about the lack of PIN verification when making in-store purchases, making it easier for fraudsters to exploit the system. Costco customers, including Xu and Lisa Mannella, called for accountability and fair compensation for those affected by the Shop card issue.