Chinese hackers managed to reverse engineer the algorithms responsible for creating iTunes voucher codes, creating fully legitimate codes that are redeemable via the iTunes store into a customer's account. The hackers have now made key generators to actually create the codes on the fly. Unfortunately for them, the codes only work in the U.S. iTunes store.
Which is why the codes are now being sold on Taobao, the largest auction site in China. The Chinese website is selling iTunes gift cards that are worth up to $200 for as low as $3.
At this time, Apple hasn't made any public comments on the situation, most likely because its working on a solution to invalid the codes. Unfortunately, the codes are legitimate and are based on Apple's own algorithm for generating codes, so any attempt to alter the codes would potentially hurt all the existing cards in stores.
The cards are now starting to also appear on eBay, but for much more--around $40 for a $200 card.
But, third-party reports have confirmed that the voucher codes being sold by the Chinese hackers are in fact redeemable in iTunes (not sure how they verified this without exposing themselves to criminal charges however). So what is actually happening here? There are two likely scenarios: either the Chinese hackers have managed to penetrate Apple's internal network and/or iTunes gift card database and are directly stealing activated numbers before they can be used, or they are simply using stolen credit card numbers to purchase the cards.
All I can say: holy shit!!
SOURCE
Which is why the codes are now being sold on Taobao, the largest auction site in China. The Chinese website is selling iTunes gift cards that are worth up to $200 for as low as $3.
At this time, Apple hasn't made any public comments on the situation, most likely because its working on a solution to invalid the codes. Unfortunately, the codes are legitimate and are based on Apple's own algorithm for generating codes, so any attempt to alter the codes would potentially hurt all the existing cards in stores.
The cards are now starting to also appear on eBay, but for much more--around $40 for a $200 card.
But, third-party reports have confirmed that the voucher codes being sold by the Chinese hackers are in fact redeemable in iTunes (not sure how they verified this without exposing themselves to criminal charges however). So what is actually happening here? There are two likely scenarios: either the Chinese hackers have managed to penetrate Apple's internal network and/or iTunes gift card database and are directly stealing activated numbers before they can be used, or they are simply using stolen credit card numbers to purchase the cards.
All I can say: holy shit!!
SOURCE
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