Costco Is Cracking Down on Cheaters. Here's Why That's a Smart Move.

If you've been borrowing a friend or family member's card to score big savings at Costco (NASDAQ: COST), consider yourself warned.

The warehouse retailer is cracking down on shoppers abusing its membership policies, including using someone else's card to shop at its stores. The move comes shortly after Netflix (NASDAQ: NFLX) implemented a similar crackdown on password sharing for its streaming service after deciding that too many people were using it without paying.

Netflix had long tolerated that password sharing, believing that those users would eventually become paying subscribers. Costco, on the other hand, doesn't seem to have previously overlooked any abuse of its membership policies, though the company has noticed that as it's rolled out more self-checkout counters, more customers are taking advantage and borrowing cards from members to shop there.

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Source Fool.com