Credit card issuers have identified fraudulent transactions

Apr 23, 2013 11:42 GMT  ·  By

Evidence obtained by security expert and journalist Brian Krebs suggests that Teavana, the tea products retailer, might have suffered a data breach as a result of which customer payment cards have been compromised.

Starbucks, which has owned Teavana since December 2012, has declined to comment, but sources from a US card issuer have told Krebs that the large number of fraud incidents indicate a possible breach that impacts the entire franchise.

Law enforcement representatives have also confirmed that they’re looking into a possible breach.

A second payment card issuer has also identified fraudulent transactions being made with cards that have been utilized at Teavana locations across the US.

It’s likely that the cybercrooks have installed pieces of malware on point of sale devices, which they have utilized to steal the information needed to clone cards.

Starbucks representatives say the company “takes its obligation to protect customers’ financial information very seriously,” adding that they’re prepared to take action in case any issues are identified.