Costco shoppers are drawn to the retailer for its excellent prices, bulk deals, and quality goods, but unfortunately, this popularity also makes the store a prime target for scammers. From fake giveaways to phishing scams, criminals are constantly coming up with new ways to trick Costco customers. In fact, the issue is so rampant that Costco has dedicated a section of its website to known scams, warning customers to stay alert.
The rise of online shopping and the increased sophistication of scam tactics have created the perfect environment for these fraudsters to operate. The Federal Trade Commission (FTC) reports that in 2022, consumers lost over $9 billion to scams, and in 2023, that number rose to a staggering $10 billion. The alarming trend shows that while the number of reported scams hasn’t dramatically increased, the financial impact of each scam is growing. This highlights the need for vigilance when shopping at Costco or any retailer.
Here are some of the most common scams that Costco shoppers should be aware of before their next shopping trip.
1. Fake Giveaways and Prize Scams
Everyone loves a good giveaway, especially when it seems to come from a trusted brand like Costco. But scammers know this, and they use fake giveaways and prize notifications to lure victims into providing personal information. These scams often claim you’ve won a prize or entered a contest, even if you never signed up. The scam will ask for personal details like your address, credit card information, or even your Social Security number to claim the prize.
Costco has warned customers about these types of scams, urging them to call the company directly if they receive any suspicious notifications. Remember, if you didn’t enter a contest, you likely didn’t win anything, and Costco won’t ask for sensitive information through random emails or links.
2. Fake Freebies
Similar to prize scams, some scammers claim to be offering free products or gift cards to Costco customers. These promotions may seem legitimate at first, but they are designed to steal your personal information. Ads offering free items for being a loyal Costco customer or gift cards in exchange for filling out a survey are red flags. Costco doesn’t give out freebies in this manner, so be skeptical of any such offers.
If you ever receive an unsolicited email or ad about a free Costco item, don’t click any links or enter any personal information. Report it to Costco and the FTC to prevent others from falling victim.
3. Survey Scams
Surveys offering cash or gift cards in exchange for answering a few questions have become a favorite tactic for scammers. Costco is often used as bait in these survey scams. You may receive an email or social media message claiming to be from Costco, asking you to take a survey in exchange for a reward. However, instead of a reward, these surveys are just a way for scammers to collect your personal data.
Costco has acknowledged multiple variations of survey scams on its website. The best way to protect yourself is to avoid clicking on links in unsolicited messages and never provide personal information through these surveys.
4. Fake Social Media Accounts
Social media has become a breeding ground for scammers pretending to represent Costco. Fake Facebook profiles, Instagram accounts, and Twitter handles are created to trick people into thinking they’re interacting with the real Costco. These fake accounts often promote bogus deals or ask for personal details to claim a prize.
To avoid falling for these scams, verify any social media account claiming to be Costco. Look for the verified checkmark next to the company’s name, and if you’re unsure, visit Costco’s official website.
5. Fake Costco Websites
Scammers also create fake websites that look almost identical to the real Costco site. These websites often promote special sales or offer discounted goods that Costco doesn’t actually sell. Sometimes the URL will have a small typo or variation, making it difficult to spot the difference unless you look closely.
Always ensure you are on the official Costco website before making any purchases. It’s a good idea to bookmark the correct site and avoid clicking on links from emails or social media posts to get there.
6. Fake Membership Renewal Notices
Costco memberships need to be renewed yearly, but scammers are sending fake renewal notices to trick people into giving up their credit card details. These emails often offer a discount on renewal or claim that your membership will expire soon. Costco does not send these types of renewal notices, so if you receive one, be cautious.
Instead of clicking on any links in these emails, go directly to Costco’s website and check your membership status.
7. Fake Customer Service Calls
In one particularly odd scam, people are receiving phone calls from someone claiming to be from “Costco Chinese Member Service.” The scammer may say there’s been fraudulent activity on your account or offer to help with an issue. They may even spoof the phone number to make it look like the call is coming from Costco.
If you receive an unexpected call from Costco, hang up and call the official customer service number listed on Costco’s website to verify the claim.
8. Scams in the Parking Lot
Costco parking lots are busy, and scammers use this to their advantage. One common scam involves someone approaching you in the parking lot, asking for help buying groceries or gas. In some cases, they may offer to sell you fake jewelry for a “discount” or ask for cash in exchange for a bogus story.
Be wary of anyone approaching you in the parking lot. If something doesn’t feel right, don’t engage and report the incident to Costco security.
Stay Vigilant
As scammers become more creative, it’s essential for Costco shoppers to stay informed and cautious. Remember to verify the authenticity of any communication from Costco and never provide personal or financial information through unsolicited emails, phone calls, or websites. By staying alert, you can avoid falling victim to these increasingly common scams.
