Starbucks Denies App Hack, Users Lose Hundreds of Dollars

Starbucks Denies App Hack, Users Lose Hundreds of Dollars
Starbucks makes me feel better! Steve Webel/Flickr CC BY-ND 2.0
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Starbucks has denied that hackers has caused severe security problem for users of their app. Hackers are allegedly overriding users’ credit cards, bank accounts and PayPal accounts. However, according to the company, the app was not hacked.


In a statement issued by the company it was mentioned, “Like all major retailers, the company has safeguards in place to constantly monitor for fraudulent activity and works closely with financial institutions.”

According to CNN, many users lost three-figure sums from their accounts as a result of the hacks. One user reported that his account was auto-reloaded every time the balance went below $100.

Jean Obando was a victim of this Starbucks app hack. His account was being auto-reloaded with $50 gift points. He was also getting notified by PayPal time and again before he actually noticed. It took him two weeks to get back the $550 stolen from his account.

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The company blamed user passwords rather than security. The company wrote, “This is primarily caused when criminals obtain reused names and passwords from other sites and attempt to apply that information to Starbucks.”

According to the company, in most cases, users choose passwords that are easy to remember, and thus it becomes easy for hackers to enter into their accounts.

The scenario cannot be denied completely, though. In many cases, individuals tend to repeat passwords for several websites. All the hackers need to do is to get the password and try it on different websites. If luck permits, some will open.

Starbucks has asked users to change their passwords as often as possible, denying the app hack.

Starbucks has mentioned in a statement, “If a customer believes their account has been subject to fraudulent activity, they are encouraged to contact both Starbucks and their financial institution immediately. Customers are not responsible for charges or transfers they did not make. If a customer’s Starbucks Card is registered, their account balance is protected.”