AT&T halts pre-orders for Apple’s next-gen smartphone

Jun 17, 2010 06:57 GMT  ·  By

After experiencing a terrible security breach on its website, while struggling to handle massive amounts of iPhone 4 pre-orders, the exclusive operator carrying the iPhone in the US is now facing disaster having sent out thousands of emails containing billing information to the wrong people. AT&T’s ordering system mistakenly showed and used the wrong customers' personal information, prompting the carrier to suspend iPhone 4 pre-ordering.

As the fiasco unfolded, Gizmodo ran a story including numerous emails from affected customers who wanted to get the word out. One thing many of these complaints have in common is logging in to an AT&T account and seeing a different customer’s information on screen.

When I enter my account to remove my credit card info, it describes my card as an American Express, and shows a partial account number and expiration date,” a person identified as Christian du Lac wrote to the tech site. “Problem is, it's not my card: I haven't had an Amex account in 12 years.” Christian also attached a screenshot as evidence.

And while it’s possible that many people have used others’ information to place an order, some should be on track to receive an iPhone they didn’t even plan on buying. It is the case of Gizmodo reader “gamepolice,” who wrote, “So it looks like I am getting a free iPhone from AT&T because of some guy named John (I won't reveal his last name) ordered one. The confirmation came from one of my other email accounts which is tied to my AT&T account. It has his credit card information but my shipping address. I work in IT so I can see how bad this is for security reasons. I didn't order an iPhone and I don't even get wireless service from AT&T. Someone screwed up badly on this and I would be demanding that AT&T purge all orders from yesterday ASAP. As it looks now though I am getting a free iPhone from AT&T and I don't know if I should return it or keep it, if it arrives.”

One of our own readers is saying that his order has been cancelled. This likely happened after AT&T decided to shut down their online sales system following these security problems. Basically, the operator is doing everything it can now to avoid any more damage. The company issued an official statement that confirms the move, but doesn’t reveal the reason. An AT&T staffer revealed that the problems were related to a server fraud update, according to the aforementioned source.