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iTunes Gift Card System Hacked

by Terrence O'Brien on March 11, 2009 at 04:15 PM



We're sure this one has Apple's panties in a bunch: Chinese hackers have cracked the iTunes gift card system. Fake, but functional, cards have found their way onto Chinese auction site Taobao.com and are selling for a tiny fraction of their value.

Using a custom program, hackers are able to generate viable gift card codes without actually purchasing them. These fake codes are then being auctioned off on Taobao.com for as little as 18 Chinese yuan (or, about $2.60 for a $200 card). As for whether or not these codes can be used in places other than China, we direct you to Wisebread.com, where, this past January, Torley Wong reported having successfully spent a pirated gift card at the U.S. iTunes store.

Do you buy music, audiobooks, or videos on iTunes
Yes420 (61.0%)
No246 (35.7%)
I'm not sure.23 (3.3%)



Apple is going to have a hard time battling this scheme. Invalidating the fake codes being sold (of which there are thousands, according to music industry consultation site Outdustry.com) may mean changing how gift card codes are generated. That could make many legitimate cards that are already in circulation worthless.

Whatever solution Apple concocts, we're sure they'll act soon. In the meantime, we won't lie; we're tempted to pick up a $200 card ourselves. We'd never have to pay for an iPhone app again. Too bad we can't read Chinese. [From: TrustedReviews Via: Slashdot]


Seven Security Breaches

    45 Million Card Numbers Stolen from TJ Maxx and Marshall's
    TJX Companies Inc., the umbrella corporation of TJ Maxx and Marshall's, was taken for over 45 million card numbers between 2004 and 2007. So much for those alleged TJ Maxx bargains.

    Getty Images

    Thieves Snag 4.2 Million Credit Card Numbers from Supermarket Chain
    Sometime between December, 2007 and February, 2008, data thieves -- infiltrating the credit card authorization system of Hannaford Brothers and Sweetbay grocery stores -- managed to obtain the information of 4.2 million cards. Close to 2,000 cases of fraud were reported.

    17 New Yorkers Busted for ID Theft and Money Laundering
    Back in 2007, the New York-based company Western Express International was found to be a powerful credit-card harvesting operation, responsible for trafficking 95,000 stolen card numbers. Seventeen employees were indicted.

    More Than Four Million Health Records Breached in 2008
    According to research firm DataLoss DB, 4.07 million individuals had their healthcare records compromised last year. We know at least two of them belonged to Britney Spears and Farrah Fawcett, and were sold by a California hospital worker.

    Getty Images

    CardSystems Solutions Taken for 40 Million Accounts
    Having snuck past the security systems of CardSystems Solutions, data thieves compromised around 40 million card accounts in 2005. No word on whether or not the company has considered changing the name to CardSystems Problems.

    Hackers Who Stole Credit Card Numbers from Dave & Buster's Arrested
    Last year, the Justice Department busted an international ring of hackers who had stolen an untold number of credit card numbers from the Dave & Buster's restaurant chain by installing software on the company's national servers. Reported losses were well in excess of $600,000.

    11 Arrested in Theft of 41 Million Credit Card Numbers
    In August of last year, Federal prosecutors charged 11 thieves in the U.S.A., former Soviet states and China with stealing 41 million credit cards' information. A Miami man, Albert Gonzalez, was charged as the group's mastermind.


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Tags: app store, apple, AppStore, china, hack, hacks, itunes, itunes store, ItunesStore, piracy, retail, security, shopping

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