Apple Facing Increasing Claims of App Store Fraud

At the same time the company is facing a class action lawsuit in a U.S. District Court, fraud claims related to Apple's iTunes app store have increased dramatically. In a particularly egregious case, the New York times has reported on the plight of a man named Ryan Matthew Pierson who was billed over 400 dollars in iTunes charges for the virtual currency used in iMobster. Naturally, Pierson has never played the game, and after complaining to Apple was eventually able to recoup the stolen funds. Though his story has a somewhat happy end, it's an example of what appears to be a dangerously ungoverned marketplace. As the Telegraph notes, an Apple forum post called iTunes Store Account Hacked has garnered 1300+ responses, with hundreds of people citing instances of fraud dating back to 2010. 

One user claims that less than 24 hours after resolving a fraud complaint with Apple, his iTunes account was hacked for a second time. This fraud appears to be hurting legitimate developers as well. Bejing-based developer Hoolai Game noticed recently that close to 50 percent of transactions attributed to their apps were caused by fraud. Apple has not made any official comment on the matter yet, but the company has come under increasing scrutiny in the months since Steve Jobs died; this current spike in fraud claims comes on the heels of a recent demand from US congressman Henry Waxman that Apple make public information pertaining to how App store vendors collect data. Meanwhile, the company is also facing allegations of using an underage workforce in their overseas operations. Even so, iPad 3 launched last week with reportedly record-breaking sales, suggesting they'll be crying about such criticism all the way to the bank.

Create a new thread in the Streaming Video & TVs forum about this subject
This thread is closed for comments
32 comments
    Your comment
    Top Comments
  • killerchickens
    Fraud= Every time you buy a product from apple.
    Sarcasm kind of but not really.
    27
  • joytech22
    *Unlinks card details from iTunes*
    Problem solved.

    *Continues happily purchasing songs and albums from Dick Smiths Electronics Music kiosks*

    Joking around aside, I think I remember hearing noobs boast about how much more "secure" Apples products are in comparison to the competition. Just another example that no system is safe, every system has its vulnerabilities. Even if it happens to be the user.. lol.

    I'm actually assuming these "hacks" are nothing more than victims of keyloggers or using their password all over the place and one of those databases got hacked.

    .....Or they used weak-arse encryption and used stuff like polyalphabetic ciphers.
    23
  • willard
    Wohoo, the fanboys already found me. How dare somebody point out shitty things Apple has done! Quick, rate him down so we can keep pretending Apple is perfect!

    I think I'll just post some more shitty things Apple has done.

    1. In 2008, Apple issued a DMCA takedown notice to OdioWorks, a nonprofit company that operated a wiki. Their offense? Daring to host articles that showed users how to use third party hardware and software with an iPod. Apple did not back off until the EFF came to OdioWorks' defense, and issued a lawsuit against Apple.

    2. A few months ago, Apple was fined more than a million dollars for violating Italian law and failing to notify customers of the two year warranty they already had on any Apple products and instead attempting to sell all its customers an additional two year warranty, overlapping with the one they already had.

    3. When somebody finally decided to make malware for OS X, Mac Defender, Apple was ready and waiting to not issue any help to its customers whatsoever, even though the process could be easily stopped manually. Even when customers were handing over all their credit card numbers willingly and the majority of calls coming in to Apple were related to Mac Defender, Apple specifically instructed its employees to provide no assistance and not to tell them where they could get assistance. This policy stood for days before Apple decided to actually help its users in any capacity.

    4. When an unofficial biography of Steve Jobs portrayed him in a highly negative light (the official biography has since confirmed that Jobs was more than a bit of an asshole), all of the publishers books (almost entirely educational materials) were banned from Apple stores.

    I might come back later and post more as I remember them. Trying to stay away from Foxconn, since Apple is certainly not the only one who deserves the blame there (I'm looking at you, Microsoft).
    22
  • Other Comments
  • danwat1234
    Apple FTMWL!
    -9
  • joytech22
    *Unlinks card details from iTunes*
    Problem solved.

    *Continues happily purchasing songs and albums from Dick Smiths Electronics Music kiosks*

    Joking around aside, I think I remember hearing noobs boast about how much more "secure" Apples products are in comparison to the competition. Just another example that no system is safe, every system has its vulnerabilities. Even if it happens to be the user.. lol.

    I'm actually assuming these "hacks" are nothing more than victims of keyloggers or using their password all over the place and one of those databases got hacked.

    .....Or they used weak-arse encryption and used stuff like polyalphabetic ciphers.
    23
  • fancarolina
    Apple is announcing what they are doing with their $100 Billion, maybe they can throw some cash at the problem.
    9