Retail giant Costco discloses data breach, payment card data exposed

Costco Wholesale Corporation discloses a data breach, threat actors had access to customers’ payment card information.

Retail giant Costco Wholesale Corporation notified its customers of a data breach that might have exposed their payment card information. Data was allegedly exposed while customers were shopping at one of its stores.

Costco discovered the security breach after its staff spotted a card skimming device in one of its warehouses as part of a routine check. The company is investigating the incident with the help of law enforcement and notified the authorities.

The retail giant has 737 membership-only retail stores across the U.S., it is the fifth-largest retailer in the world and the 10th-largest corporation in the country by total revenue. The company also operates eCommerce websites for shoppers in North and South America, Europe and Asia.

“We recently discovered a payment card skimming device at a Costco warehouse you recently visited,” reads the notification letter sent to potentially impacted customers. “Our member records indicate that you swiped your payment card to make a purchase at the affected terminal during the time the device may have been operating.”

Costco revealed that threat actors might have obtained customers’ payment information through the skimmer.

Bleeping Computer reported that some customers claim that the security breach could have taken place in February.

“If unauthorized parties were able to remove information from the device before it was discovered, they may have acquired the magnetic stripe of your payment card, including your name, card number, card expiration date, and CVV,” Costco added.

The company recommends customers monitor their bank accounts and credit card statements for fraudulent activities.

At this time, it is not clear the extent of the security breach, the company did not reveal the number of potentially affected individuals either the warehouse where the skimmer device was discovered.

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Pierluigi Paganini

(SecurityAffairs – hacking, skimmer)

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