Dozens of Costco customers say their digital gift cards were drained of funds without explanation, and the company has failed to provide answers or consistent refunds.
Several Costco customers across Canada have come forward reporting that hundreds of dollars vanished from their digital Costco Shop cards without warning. Despite numerous complaints and hours spent seeking support, many victims say the company has been unhelpful or outright dismissive.
Shelly Xu of Perth, Ontario, is one such customer. She says she discovered $200 missing from her card in late June. After numerous phone calls and in-person visits to her local store, she remains without a refund more than a month later. “They haven’t provided any guidance whatsoever,” Xu said. “It’s just unacceptable.”
Similar complaints have appeared on Costco’s own e-commerce platform and across social media, with affected users reporting losses between $150 and $1,000. While a few customers were eventually refunded, others, like Lisa Mannella of Niagara Falls, were denied. Mannella was told that Costco is not responsible for stolen cards—a claim echoed in the retailer’s terms and conditions.
Experts suggest the scam may involve either email compromise or barcode duplication. Cybersecurity analyst Ritesh Kotak noted that barcode sequences on Shop cards may have been recreated by fraudsters using freely available software. This is especially concerning as cashiers in Costco stores often scan barcodes from screens or printouts without requiring the PIN, allowing unauthorized use.
Costco has offered little public communication and did not respond to repeated media requests for comment. The retailer did temporarily suspend digital Shop card sales in early July, suggesting internal awareness of the issue.
Consumer advocates argue that gift card protections lag behind those for credit or debit cards, and that companies like Costco should take full responsibility when fraud is clearly affecting multiple customers. “The last thing you want to do is re-victimize someone who’s already been victimized,” Kotak said.
The total number of impacted customers remains unclear.
