● Covered by 2 sources · 2 reportsMedium impact2 negative
Chinese Crime Ring Hacked Staples, Stole Millions in Gift Cards for Retail Theft
Key points
- Chinese crime ring hacked Staples' internal systems.
- Over $5 million in gift cards for Target and Sephora were fraudulently issued.
- Hackers accessed Staples' internal customer support system, Nexus.
- Stolen goods were shipped to China as part of a retail theft operation.
- Over 15,000 gift cards were issued.
- Stolen gift cards bought high-value electronics.
- Retailers affected included Lowe's.
- The hack occurred in 2023.
- Homeland Security Investigations (HSI) was informed in October 2023.
- The hack led to a search warrant unsealed last week.
- The victim company is headquartered in Massachusetts.
- The victim company uses Blackhawk Networks for gift card orders.
Staples Hacked for Gift Card Fraud
A Chinese organized crime group infiltrated the retail giant Staples, gaining unauthorized access to its systems. This access was used to fraudulently issue more than 15,000 gift cards, totaling over $5 million, for other major retailers such as Target and Sephora. This previously unreported hack highlights the increasing sophistication of organized retail crime operations.
Details of the Breach
Homeland Security Investigations (HSI) received information in October 2023 regarding the breach. Court records indicate the victim company, identified as Staples through various clues including its Massachusetts headquarters and use of Blackhawk Network for gift card fulfillment, was targeted. The hackers exploited Staples' internal customer support system, Nexus, which was believed to be accessible only internally. They performed heap dump requests to capture data and hijack sessions of logged-in customer service representatives to issue the gift cards.
Nationwide Shopping Spree and Export
The fraudulently obtained gift cards were sent to email accounts controlled by the crime group. Members then used these cards to purchase electronics and other products from stores like Target across the U.S. For example, 35 gift cards from the Staples hack were used at a single Target store in New Hampshire within an hour to buy Apple, Bose, and Powerbeats products. The purchased merchandise was subsequently shipped back to China, indicating a large-scale international retail theft operation.
Impact on Retailers
This incident reveals the extensive scale at which some organized crime groups are targeting U.S. retailers. The operation involved dedicated warehouses for housing stolen merchandise and demonstrates a high level of organization and technical capability. Staples has not commented on the incident.
Updates
- Over 15,000 gift cards were issued.
- Stolen gift cards bought high-value electronics.
- Retailers affected included Lowe's.
- The hack occurred in 2023.
- Homeland Security Investigations (HSI) was informed in October 2023.
- The hack led to a search warrant unsealed last week.
- The victim company is headquartered in Massachusetts.
- The victim company uses Blackhawk Networks for gift card orders.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
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How outlets covered it
A Chinese crime ring accessed an internal Staples system in 2023, issuing over 15,000 gift cards worth more than $5 million. The hackers exploited a vulnerability in Staples' Nexus customer support system to hijack employee sessions and generate gift cards, which were then used to purchase high-value electronics at various retailers.
A Chinese organized crime group hacked into Staples' internal systems, fraudulently issuing over 15,000 gift cards worth more than $5 million for other retailers. The group then used these gift cards for a nationwide shopping spree, shipping stolen electronics and other goods back to China as part of a large-scale retail theft operation.