Starbucks admits its iPhone app stores unencrypted user passwords

The Starbucks mobile app, the most used mobile-payment app in the U.S., has been storing usernames, email addresses and passwords in clear text, Starbucks executives confirmed late on Tuesday (Jan. 14). 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 issue appears to be an example of convenience trumping security. One of the reasons for the Starbucks mobile app's popularity is its extreme ease of use. Customers need only enter their password once when activating the payment portion of the app and then use the app to make unlimited purchases without having to key in the password or username again. (Only when adding money to the app is the password required.)