Politico A former employee of the Washington-based online grocery chain Grubhub says his company had an issue with the way it handled payment card fraud in the first half of this year.
He told POLITICO he was not aware of any other complaints from the company.
The employee, who spoke on condition of anonymity, spoke on the condition of not revealing his identity.
He said he had never seen any evidence of GrubHub using its app for fraud, and that it was not until the company had experienced problems with the app that they started looking into the issue.
“The first day we started seeing the app get hacked, they had it in a different state, they were getting it from different vendors, they weren’t sure how it was going to be handled,” the former employee said.
“[Then] they found that there were fraudulent card holders, and they realized it was really hard to get fraud protection from their customer.
So we started to look into it, and we saw that we had a lot of bad guys using the app.”
He said GrubHQ began a security audit in October, after he said his company experienced a hack, and discovered that the company was not complying with its own security protocols.
He also said that the security audit did not reveal any problems with GrubHUB’s internal systems.
GrubHub is owned by billionaire investor Carl Icahn, who has a long history of funding fraudulent startups.
Icahn was the largest individual investor in Uber, a ride-hailing service, in the 2016 race to take over Uber, and his son, Jack, is the president of the taxi company.
Icans involvement in GrubhirehHub is notable, given Icahn’s history with scams and fraud.
In March 2016, he purchased the website domain name grub.hubhub.com, which had a link to a fake website that advertised a new Grub Hub app that could help consumers with a free $1 credit card.
During that same month, Icahn bought a $200 million stake in the company, and he and his wife purchased a $1 million home in New York City, which Icahn had sold in 2015.
He then donated $1.5 million to help build GrubTech, which was a startup that was later acquired by GrubHC.
Icahn’s son, Eric, was also an investor in the startup.