ALERT: Big Box Store Issues Scam Warning to Members in Louisiana, Texas
One of America's favorite membership-based big box stores is warning its shoppers about an online scam that could cost them a lot of money if they aren't careful.
There are three Costco locations in Louisiana and 38 in Texas. That means a lot of folks across both states probably have memberships to the big box chain, and it's understandable why. The savings the store offers for buying in bulk are incredible, especially for bigger families.
They do come at a cost - the memberships aren't free, after all. For most people, it's $60 per year to get access to those great deals. Recent revenue shortfalls have Costco considering price hikes, however.
"It's when, not if, still," CFO Richard Galanti told a Morgan Stanley analyst recently. The statement came after the company announced it fell short of revenue projections, but made more money in membership sales.
The problem now is that there are scammers out there willing to take advantage of the exclusive nature of Costco for their own gain.
Costco Warns About Email Scam
Costco's customer service is warning shoppers about scammers sending out emails pretending to be Costco, using pop-up ads, and more, all trying to get people's personal and financial information.
"It is an unfortunate fact of the Internet that at any given time there are numerous illegitimate pop-up ads, surveys, websites, emails, social media posts and advertisements that purport to be from or authorized by Costco," the company said on its website. "This type of fraud is prolific, and it is common for bad actors to merely create new email addresses or websites from which to send their scam messages."
"This is something we can not prevent," the warning continued. "It is unlikely that Costco is affiliated with these promotions."
The scams range from fake employment opportunities, pop-up ads, check scams, and classic phishing techniques to rip people off.
Here's what you can do, the company said:
- Never respond to emails that cannot be verified.
- Never provide personal information via e-mail.
- Contact the business by using legitimate phone numbers to verify the request.
- Enter websites using your browser and not by clicking on provided links.
- Be cautious of any solicitation requesting that you deposit a check or pay a fee to collect a prize, get a job, or cover vaguely described "costs."
- Consider filing a report with the Federal Trade Commission and/or state attorney general’s consumer protection office, or the FBI. Online complaints may be filed with the FTC at https://reportfraud.ftc.gov/#/, and white collar crimes may be report to the FBI at //www.ic3.gov/complaint/default.aspx.
Why Shop at Big Box Stores?
Even with the number of scams out there, a lot of folks just love Costco. Some people might be confused as to why folks would pay an annual membership fee to shop at a store. But, as it turns out, a lot of people love big box stores for several reasons:
Convenience: Big box stores are often one-stop shops, providing a wide variety of products under one roof. This convenience saves time and effort for shoppers who can find everything from groceries to electronics in a single location.
Cost Savings: Big box stores are known for offering competitive prices and discounts due to their large-scale operations and bulk purchasing power. Shoppers often find lower prices compared to smaller retailers.
Selection: These stores typically have extensive product selections, catering to diverse needs and preferences. Shoppers appreciate the abundance of choices when it comes to brands, styles, and features.
Bulk Buying: Big box stores often sell items in bulk or larger quantities, allowing consumers to save money on everyday essentials. This is particularly attractive for families or those looking to stock up on non-perishable items.
Accessibility: Big box stores are usually located in easily accessible areas, including suburban and rural locations. This accessibility makes them convenient for a broad range of consumers.
Brand Recognition: Many big box stores are well-known national or international chains. Shoppers often trust familiar brands, and the recognizable names of these stores can instill confidence in the quality of products and services.
Services: Beyond just products, big box stores often offer additional services, such as pharmacy, optical, photo processing, and more, making them a comprehensive solution for various needs.
There are a lot of great reasons to use Costco and other stores like it, but it's always important to pay attention to what you're being asked to fill out - especially online. The increasing number of scammers can take a favorite chain like this and use its logo to rob you blind.