iTunes gift cards cracked and selling for 1.3 cents on the dollar

Chinese crackers have cracked the iTunes gift card system and started a business selling counterfeit iTunes codes on Chinese auction sites such as Taobao.com. According to The Register the fake iTunes gift cards are created using key generators, using a technique previously applied to Windows activation hacks. Business in the illicit cards has been booming over the last six months and prices have fallen to less than $3 for a $200 iTunes card.

Music industry consultancy Outdustry confirmed that the counterfeit coupons work by buying a voucher and transferring the illegitimate credit into an iTunes account.