A massive Chinese crime ring hacked Staples to generate millions of dollars in fraudulent gift cards, using them to purchase expensive electronics as part of a criminal operation involving over $100 million.
The hackers infiltrated the office supply giant’s internal systems and issued more than 15,000 gift cards worth over $5 million, which were then used at major retailers including Target and Sephora.
According to an investigation by 404 Media, the previously unreported breach was uncovered through court documents unsealed in October 2026, revealing how the group exploited Staples before embarking on a nationwide shopping spree.
The revelation comes amid several major cyberattacks in 2026, including hackers targeting hundreds of supermarkets in France by manipulating refrigeration systems and forcing stores to throw away spoiled food.
DexertoChinese hackers exploited Staples customer support system
The scheme dates back to October 2023, when Homeland Security Investigations received information that hackers had compromised an office supply company and generated more than $5 million in gift cards.
Although Staples was not directly named in the court documents, 404 Media identified the retailer through details about its headquarters, gift card provider, and an internal customer support system called Nexus.
The hackers reportedly found a way to access Nexus remotely, despite Staples believing the platform could only be accessed through internal computers.
They then captured data from the system’s memory and hijacked active customer service employee sessions, allowing them to generate thousands of fraudulent gift cards sent directly to email accounts under their control.
Members of the criminal organization used the cards to purchase expensive electronics, including Apple products, Bose headphones, and Powerbeats.
ScreenshotInvestigators discovered that 3,850 gift cards worth approximately $141,000 were redeemed at 85 Target stores across 18 states in just two days.
Sephora reported another $58,600 in redeemed gift cards, while Lowe’s identified approximately $226,000.
In total, the group successfully redeemed 4,630 gift cards linked to the Staples breach, worth approximately $425,000.
However, the Staples hack was only one part of a much larger criminal operation.
According to the US Department of Justice, the organization acquired well over $100 million in gift cards through hacking, physical gift card tampering, and scams targeting American citizens.
The cards were used to buy valuable electronics, which were transported to warehouses before being shipped to China and other parts of Asia.
Three Chinese nationals were sentenced to prison in April 2025 for their involvement in the conspiracy, receiving sentences ranging from 24 to 60 months.
Staples has not publicly commented on the newly reported breach.
The incident follows other high-profile hacking cases this year, including cyber criminals gaining access to Chick-fil-A loyalty accounts and the FBI announcing the arrest of an alleged leader of the ShinyHunters hacking group.
I’m Abhishek Sharma, an author at TigerJek.com. I enjoy exploring games, testing different strategies, and turning what I learn into clear, useful guides. My goal is to help players understand the game better and improve without the usual confusion.
