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RETAIL GIANT COSTCO DISCLOSES DATA BREACH, PAYMENT CARD DATA EXPOSED

November 13, 2021  By Pierluigi Paganini


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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.

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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.

Follow me on Twitter: @securityaffairs and Facebook



Pierluigi Paganini

(SecurityAffairs – hacking, skimmer)





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PIERLUIGI PAGANINI

Pierluigi Paganini is member of the ENISA (European Union Agency for Network and
Information Security) Threat Landscape Stakeholder Group and Cyber G7 Group, he
is also a Security Evangelist, Security Analyst and Freelance Writer.
Editor-in-Chief at "Cyber Defense Magazine", Pierluigi is a cyber security
expert with over 20 years experience in the field, he is Certified Ethical
Hacker at EC Council in London. The passion for writing and a strong belief that
security is founded on sharing and awareness led Pierluigi to find the security
blog "Security Affairs" recently named a Top National Security Resource for US.
Pierluigi is a member of the "The Hacker News" team and he is a writer for some
major publications in the field such as Cyber War Zone, ICTTF, Infosec Island,
Infosec Institute, The Hacker News Magazine and for many other Security
magazines. Author of the Books "The Deep Dark Web" and “Digital Virtual Currency
and Bitcoin”.




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