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Hardware 2.0

Adrian Kingsley-Hughes

Apple responds to iTunes fraud allegations, kicks dodgy developer out

By | July 6, 2010, 12:28pm PDT

Over the weekend something odd happened on iTunes. A rogue developer managed to grab 42 of the top 50 sales positions in the App Store’s “book” category with what appeared to be junk content.

Here’s Apple’s word on the matter:

The developer Thuat Nguyen and his apps were removed from the App Store for violating the developer Program License Agreement, including fraudulent purchase patterns.

Developers do not receive any iTunes confidential customer data when an app is downloaded.

If your credit card or iTunes password is stolen and used on iTunes we recommend that you contact your financial institution and inquire about canceling the card and issuing a chargeback for any unauthorized transactions. We also recommend that you change your iTunes account password immediately. For more information on best practices for password security visit http://www.apple.com/support/itunes.

That statement raises more questions than it answers. First, “fraudulent purchase patterns” doesn’t really tell us anything about the origins of the fraud or who was affected. Secondly, while Apple feels the need to confirm that developers don’t get any confidential info on app purchasers, it doesn’t make clear whether there are unauthorized ways for unscrupulous devs to get their hands on this info.

Finally, Apple is putting end users in charge of clearing up the mess by suggesting that they deal directly with their “financial institution” if they feel they’ve incurred any losses. Apple wants to stay on the periphery of any talk of fraud.

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Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology.

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Adrian Kingsley-Hughes

All opinions expressed on Hardware 2.0 are those of Adrian Kingsley-Hughes. Every effort is made to ensure that the information posted is accurate. If you have any comments, queries or corrections, please contact Adrian via the email link here. Any possible conflicts of interest will be posted below. [Updated: February 23, 2010] - Adrian Kingsley-Hughes has no business relationships, affiliations, investments, or other actual/potential conflicts of interest relating to the content posted so far on this blog.

Biography

Adrian Kingsley-Hughes

Adrian Kingsley-Hughes is an internationally published technology author who has devoted over a decade to helping users get the most from technology -- whether that be by learning to program, building a PC from a pile of parts, or helping them get the most from their new MP3 player or digital camera.

Adrian has authored/co-authored technical books on a variety of topics, ranging from programming to building and maintaining PCs. His most recent books include "Build the Ultimate Custom PC", "Beginning Programming" and "The PC Doctor's Fix It Yourself Guide". He has also written training manuals that have been used by a number of Fortune 500 companies.

Adrian also runs a popular blog under the name The PC Doctor, where he covers a range of computer-related topics -- from security to repairing and upgrading.

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Wow, really?
Cylon Centurion 6th Jul 2010
Your account may have been hacked, and yet Apple will issue no refunds?
@NStalnecker
Yes, because Apple has no way of knowing if it was me or an unauthorized user of my credit card who ordered that "Futurama" season pass. Only I know that.

If it was unauthorized, my steps are the same as if that charge was placed at iTunes or electronics store across the country: call the credit card company, report the unauthorized use, and close the card.
0 Votes
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I guess that's what they call "The Apple Experience"
OS Reload Updated - 6th Jul 2010
Some say you really don't appreciate the whole Apple Experience until you experience an amateurish attempt by some other company.

Now that Apple has shown us what a full non-amateurish wall-gardened credit card drama looks like, time has come for you and all other Apple worshipers to finally start appreciating the value of it all and see it as a vital part of the whole consumerist experience.

Credit card drama is finally cool. Thanks to Apple a mundane fact of the consumerist life has now acquired a whole new meaning, it's now a part of "The Experience".

Rejoice!

P.S. And it all happened inside Apple's walled garden. That's what I call an Exclusive Experience, that's not for everyone oh no it is not, it is only for those who choose to trade their freedom for the safety of a walled garden.
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Futurama is a different story
Cylon Centurion 6th Jul 2010
@DannyO_0x98

But I can't believe they won't refund for a dodgy developer. His works are known and if they show up, should be on Apple to make the refund.
@DannyO_0x98
But what about the money that has been collected by selling phoney items? I think Apple is incharge of it might not have issued any checks to that nefarious dodgy developer and they can cancel the transaction(s), so that the money would go back to the right spot.
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Another idiot post by NStalnecker
Bruizer 6th Jul 2010
@NStalnecker

So someone gets there account hacked and this includes a stolen credit card number. Standard processes. Look at your CC statement and if it has fraudulent charges, contact your CC company.

Simple.

Apple has no way of knowing for certain who did and did not purchase legit VS fraudulent items so those that had charges against the developer got notified to verify purchases.
@NStalnecker
Apple hasn't said that at all. What they've said is if someone has your card number you should contact your bank which is (and I know this is unfamiliar territory in the TalkBacks) common sense.

Apple didn't say "unauthorized purchase ... on the iTunes store" they said "unauthorized purchase patterns". If someone got my CC number from iTunes and used it at Sears, it's not Apple's responsibility to refund the money given to Sears. It's my responsibility to go get my money back. I've been a victim of this type of thing before. The merchant who lost my card number is not the one where the subsequent fraudulent charges appeared. Apple's advice is sound.
@macadam,

You state, "The merchant who lost my card".

In tarts there is a principle, "If not for x, then y".

In other words, "If the mechant had not lost my card, I would not have been injured".

The hard part is to show that the merchant lost your card.

If you can, the merchant IS responsible, not you.

Doug
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A few years ago I was in NY City, and used my Mastercard at a McDonalds. The card was subsequently hacked (every other purchase in the city I used my Visa) and used at a shoe store. I didn't call McDonalds or the shoe store, I called Mastercard. If they feel there is a problem with a particular location and their practices, it's Mastercard's job to pinpoint the problem and then fix it, not mine. They have the resources, and Mastercard knows where and when my card - and all the other hacked cards - were used. It would be trivial for them to figure out the source of the problem.

Is there any proof that Apple's security practices are not up to standard? One thing we haven't been told is whether the iTunes account passwords were easily hacked or not. If suddenly iTunes is not letting people use weak passwords, then I guess that question will be answered.
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Apple isn't the one that has to fix this for iTMS users. If the same thing happened to Zune Store, Blackberry Marketplace, Android Marketplace, or Kindle's service, would you all be saying "Microsoft/RIM/Google/Amazon should fix this for the customers by issuing refunds" or would you agree that customers should be doing the same steps they should be going through if this happened with brick-and-mortar retail?

I'm not here to apologize for Apple, because they should have figured out that one developer was screwing hundreds, if not thousands, of iTMS users, and had the problem fixed much sooner. However, Apple is using the same fraud policy that has worked for retain for ages - the consumer discovers fraud (usually discovered through either through reading a statement, missing card, or via fraud alerts from his CC company, but this time Apple figured it out first) and calls in to cancel illegitimate charges to the account and request a new card number, and all the other stuff you're supposed to do.
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Wow, I made someone mad.
nix_hed Updated - 7th Jul 2010
Then I got reported as spam. LOL

Okay, nevermind, Firefox is having issues today.
Apple doesn't care about what gets on the App Store as long as: 1) it's legal 2) Apple gets paid 3) doesn't compete with something Apple makes

I'm sure Apple had no choice in this one as they couldn't look the other way while this "fraud" occurred even though Apple made money off the fraud as well.

Wouldn't it been easier for Apple to refund these small purchases. It would go a long way to make people happy. But no. In this case, Apple will still get their cut....
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I'm not for Apple or anyone else
tony.kew@... 8th Jul 2010
If a store looses your Credit Card details it is there security which is at fault.

Any company who looses them should be held responsible whether it be Apple, Comet, Santandar or anyone else.
Well, I'm going through this process due to a $600 dollar Mastercard bill involving my 14 year olds ipod touch and the app store. Here are the kickers: I control the password on the iTunes account and the ipod. The "InApp purchases" ability has always been turned off. I have restrictions set on the ipod out the wazoo. And anytime a new app is installed, Jr. has to come to me for the password/approval.

So... how did I get $600 dollars worth of bills? All of the charges are to the same app/developer. All of them are the same price $41.86 times $600 bucks worth.

Hmmmm..... My personal feeling is the app/developer figured out a way to create an app that allows users to "play" with "play money" but the game actually charges your account (all with InApp purchases set to the off position)! I've contacted Mastercard and the iTunes store. This developer needs to be removed, fined, and anything else one might think of.
Chuckle
It's just folks exaggerating problems and taking a pot shot at the market leader...
Oh wait a minute...
...It's kind of like the way Apple Fanatics take Pot shots at Microsoft
..what goes around comes around...

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