Mondays worrying story - FP Tech Desk: Apple iTunes user accounts hacked: reports

FP Tech Desk: Apple iTunes user accounts hacked: reports

JOHN D MCHUGH/AFP/Getty Images

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Jameson Berkow  July 5, 2010 – 2:27 pm

If you are an Apple developer having a hard time getting people to purchase your app, one way to convince them would be to hack into their iTunes accounts and make the purchase for them.

That is presumably the strategy of a rogue Vietnamese developer named Thuat Nguyen. According to several blogs, Mr. Nguyen reportedly hacked into an unknown number of iTunes user accounts over the past few weeks in order to facilitate the purchase of his own apps. By Sunday, Engadget reported that Nguyen apps accounted for 42 of the top 50 books by revenue in the Books section of the iTunes App Store.

On Monday, TheNextWeb Apple blog reported the problem was not limited to a single hacker, saying that several Asia-based developers are using similar tactics to force users worldwide to download their apps. The goal of the strategy is not only to boost sales of their own apps, but to increase their popularity rank on the app store in hopes of encouraging other users to purchase their apps legitimately.

Users posting on Twitter and message boards have reported anywhere from under US$100 to over US$1000 being spent through their accounts without their knowledge.

“Yesterday my credit union contacted me saying there was suspicious activity on my debit card. Sure enough over 10 transactions in the $40-$50 area all on iTunes equaling to $558.” reads a recent post on the MacRumors forum.

“Most of the 15 purchases where for items that I don’t even own i.e. iphone (I have a blackberry) and iPod (I’m 47 and I still use a radio for my music). I was able to verify the $70.15 charge via mobile banking and immediately called my bank” reads another.

The breach was first noticed by two competing Apple developers, both of whom grew concerned when the popularity rankings of their own apps started to slip. After being informed of the suspicious activities, Apple has removed all apps authored by Thuat Nguyen and several other developers from the app store. While the tech giant has not released an official statement or responded to media requests for comment (including one from Financial Post), several users have reportedly been told to change their passwords.

News of a possible security breach could not be coming at a worse time for the world’s largest tech firm, already facing one of its worst public relations fiascos ever over reception issues with the new iPhone 4. Without an official statement from Apple, it is impossible to know with any certainty how many of the more than 100 million active iTunes accounts are at risk.

That said, Apple’s original advice is still correct: If you have an iTunes account, change your password and keep a close eye on those banking statements.

jberkow@nationalpost.com

Posted in: FP Posted, FP Tech Desk  Tags: FP Tech Desk, Apple Inc., iTunes, App Store, iPhone 4, Engadget, MacRumors, TheNextWeb