Online scammers targeting the 'Cash' of Kohl's shoppers

Before you go, we thought you'd like these...
Before you go close icon
Retailer Kohl's Is a Potential Target for Activist Investors

Never mind stealing credit card information: Some thieves have moved on to stealing Kohl's Cash — yes, the discount department store chain's coupon-like rewards.

The blog KrebsOnSecurity detailed one such case Tuesday, while CBS MoneyWatch recounted another case from late last year.

SEE ALSO: 23 books Mark Zuckerberg thinks everyone should read

A Kohl's spokesperson also confirmed to KrebsOnSecurity that the publicly traded company "is aware of a limited number of cases."

These incidents start with scammers obtaining the kohls.com log-in information of Kohl's customers.

In the case of Suzanne Perry, KrebsOnSecurity reports that scammers changed the email address she had on file with kohls.com and purchased nearly $700 in bulky goods through her account. As a result, the $220 in Kohl's Cash earned on the purchases was emailed to the scammers while the goods were mailed to Perry's home.

According to Brian Krebs, the reporter behind KrebsOnSecurity, the scammers quickly redeem the Kohl's Cash at stores for items they can resell. By ordering bulky items, which take longer to return, the scammers gain extra time to use the Kohl's Cash. The time delay is important because Kohl's revokes Kohl's Cash rewards when the items purchased to gain them are returned.

Perry became suspicious when she received an email from Kohl's informing her that her account password had been changed, a key indicator of a compromised account.

Another Kohl's customer, Diane Poremsky, blogged in October that she did not realize she had been targeted until the goods — 11 identical men's dress shirts totaling nearly $500 — were delivered to her door. Scammers had used the credit card information she stored on the online account to make the purchase.

The moral of the story? Passwords.

Krebs explains:

This type of fraud usually stems from customers picking weak passwords, or re-using the same password at multiple sites.

The Kohl's spokesperson had similar advice:

"As a best practice, we would encourage customers to regularly change their passwords and to not use the same password for multiple accounts."

RELATED: Top retail brands for millennials

25 PHOTOS
Top retail brands for millennials
See Gallery
Online scammers targeting the 'Cash' of Kohl's shoppers

24. Levi's 

Photo via AP

23. Calvin Klein

Photo via Getty

22. Ralph Lauren

Photo via AP

21. Michael Kors

Photo via Getty

20. Walmart

Photo via Shutterstock

19. Macy's

Photo via AP

18. Vans

Photo via AP

17. Old Navy

Photo via Shutterstock

16. Converse

Photo via AP

15. Adidas

Photo via Shutterstock

14. Gap

Photo via PA Wire

13. Under Armour

Photo via Getty

12. Bath & Body Works

Photo via Getty

11. Nordstrom

Photo via AP

10. Target

Photo via Alamy

9. Urban Outfitters

Photo via PA Wire 

8. J.Crew

Photo via AP

7. H&M

Photo via PA Wire

6. Sephora

Photo via Shutterstock

5. Lululemon

Photo via Getty

4. Zara

Photo via Getty

3. Forever 21

Photo via Shutterstock

2. Victoria's Secret

Photo via Getty

1. Nike

Photo via AP

of
SEE ALL
BACK TO SLIDE
SHOW CAPTION +
HIDE CAPTION


More on MoneyTalksNews.com:
12 ways to get great clothes at a deep discount
13 surprising ways to wreck your credit score
8 sly ways to save money at Target


Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners