New Costco rewards scam hits Mississauga and Brampton

From fake romances to utility provider schemes threatening to shut down your electricity and even postal services charging fees for ‘delivered’ packages, it seems like fraudsters aren’t giving grace to any business and their clients.

Residents of Mississauga and Brampton are asked to be cautious of a new text-related scam that aims to target Costco members.

How it works is a person will get a text from an unfamiliar number that identifies itself as the Costco Wholesale company with the following message: You have received your annual 2% rewards. Reply ‘Y’ for details.

For a frequent Costco shopper, that kind of cashback is too hard to resist and will be beneficial on their next visit to the store. However, replying to the message will lead them to more losses than gains.

The scammer will use the opportunity to commit a ‘phishing’ crime and converse with the victim while convincing them to exchange their personal financial information. Once the scammer has access to bank accounts or social insurance numbers (SIN), they can commit fraud and disappear–never to be heard from again.

The real Costco Wholesalers are aware of such scams and have given helpful tips on their website on how their customers can protect themselves.

• Do not respond to emails/text messages that cannot be verified.
• Never send any personal information through email or by text.
• Find the correct number for the business and call them to verify their request.
• Never click on any links from unknown numbers redirecting you to a different site.
• Be suspicious of any requests for cheque deposits, or asking you to pay a fee to collect a prize.

Costco suggests individuals who feel they have fallen victim to a scam like this to file a report with the Canadian Anti-Fraud Centre (CAFC)