Starbucks has admitted that its mobile payment app for iPhone does not encrypt user passwords and location data, instead storing it in a clear text format, according to a report from Computerworld.



The credentials were stored in such a way that anyone with access to the phone can see the passwords and usernames by connecting the phone to a PC. No jailbreaking of the phone is necessary. And that clear text also displays an extensive list of geolocation tracking points (latitude, longitude), a treasure trove of security and privacy gems for anyone who steals the phone.

The vulnerability was first discovered by security researcher Daniel Wood, who published his findings online for the security community after repeatedly not having success when attempting to contact Starbucks.

The coffee company tells Computerworld that it has "security measures in place now related to that". However, Wood tells The Verge that anything Starbucks does on its end "would not matter" because the vulnerability lies within the app itself.

Potential criminals would still need to physically have the phone to attain any user information, and the only information available would be user names, passwords and location data, but users of the app who had the "auto replenish" feature on would enable criminals to continually add money to the app to make Starbucks purchases.

Update: Starbucks has issued a statement acknowledging the issue and promising an expedited updated for the company's iOS app.