Starbucks has been storing the passwords for its mobile-payment app, along with geolocation data, in clear text.
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 hacking of the phone is necessary). The app also stores, in plain text, an extensive list of geolocation tracking points (latitude, longitude).
There is a very good analysis by Computerworld of why this is a very bad thing here:
Evan Schuman: Starbucks caught storing mobile passwords in clear text
Somewhat more worrying is this quote from two Starbucks executives: “Starbucks CIO Curt Garner and Starbucks Chief Digital Officer Adam Brotman — said in a telephone interview that they have known for an unspecified period of time that the credentials were being stored in clear text. “We were aware,” Brotman said. “That was not something that was news to us.”” — THATS BAD!!!