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Apple App Store Under Scrutiny As Customers Complain About Credit Card Fraud

The Huffington Post  |  By Catherine New  |  Posted: 03/16/2012 2:49 pm Updated: 03/16/2012 5:52 pm

Ipad Apple App Store

For new iPad owners, a word from those who have come before you: Fraud at Apple's App Store, the brand's virtual mall for digital merchandise, is out of control, shoppers say.

More than 1,000 complaints are currently posted on the store's message boards about credit card fraud and hacked accounts. Dating back as far as 2009, customers have complained about stolen credit cards numbers used to run up bogus charges--from several dollars to as much as $800--and accounts getting shut down after hackers made unauthorized purchases.

Even as some customers have been able to reverse unauthorized purchases by working with their bank and Apple, critics say the problem is growing and the company is not doing enough to stop it, according to The New York Times.

The store offers more than half-a-million software programs for Apple's tablets, computers and mobile devices and is part of the brand's iTunes emporium, a one-stop shop for all things digital media.

For hackers, these App Store accounts are juicy targets.

Many App Store customers have one Apple ID account and password--usually linked to a credit or debit card account--that are authorized to purchase everything from a 99-cent song in iTunes or game in the App Store to a $2,500 MacBook Pro in the online Apple Store. Online hacker forums sell Apple user accounts for as little as $33--with a promise that each password can net a fraudster thousands of dollars in credit, according to The New York Times.

A growing number of app software developers are also complaining that they are missing payments that they should be receiving from the Apple outlet, according to the NYT.

Another problem for consumers lurks in counterfeit apps for sale at the store. These are small programs that look like real apps but critics, including the tech blog Mashable, say some of these apps made by fly-by-night developers don't have the same kind security as those made by established software programmers. Using the cloned apps could compromise personal data and open the door to malware, or predatory virus-like software that can steal personal information on a device.

If you are a new or returning customer heading to the Apple's iTunes App Store, now might be a good time to update your password and take a closer look at what you are buying for your device. Apps with a long track record of user reviews are a safer bet--although make sure that the reviews and star-ratings add up. There have been reports of shill reviews on the site as well.

On Apple's support website, the company recommends using a password that is at least eight characters long and uses a combination of letters, numbers and symbols. The company also recommends changing a password frequently.

Apple did not respond to a request from comment by the NYT to address problems with hacked accounts, but said in a statement it was working to enhance security at the online store.

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For new iPad owners, a word from those who have come before you: Fraud at Apple's App Store, the brand's virtual mall for digital merchandise, is out of control, shoppers say. More than 1,000 comp...
For new iPad owners, a word from those who have come before you: Fraud at Apple's App Store, the brand's virtual mall for digital merchandise, is out of control, shoppers say. More than 1,000 comp...
 
 
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02:37 PM on 06/10/2012
Just yesterday a man who said he was responsible for handling fraud cases called me a thief and fraud and then hung up on. Fortunately Capital One is reversing all fraudulent charges but Capital One said that in the past Apple has banned anyone who claimed a fraudulent purchase claim has in the past resulted in Apple banning all future purchases. She told me that Apple may no longer allow me to books, or music or apps and that Capital One is taking action using the new Consumer Protection agency regulations to sue Apple for discrimination, defamation and false accusation of criminal activity without probable cause. I am 60,permanently disabled by a terminal mental illness and have never been treated with such disrespect.

Who does Apple think they are? God?

This is insulting, demeaning and defamation.

I
f anyone else want to initiate a Class Action suit please post to this article and we will see what we can do.

I any Law Firm wqho specialize in Class Action suits I will volunteer as the lead plaintiff.

Ernest Wright
2502 E. Beryl Ave
Phoenix, AZ85028

(602) (540) (3306)

Thank you for reading his.
02:34 AM on 03/20/2012
As much as I like Apple products, they do suck when it comes to addressing fraud on Itunes. About 2 years ago, I was very surprised that apple was very slow to act, when I reported fraud on my American Express for some chinese language purchases for crap that appeared on my itunes account, Stuff that added up to the tune of about 750 dollars, things that I would never even download if they were free, let alone pay for it. Plus what was really bad was that you could only get a hold of their fraud dept via email, there was no phone support at all, and its up to the consumer to do pretty much all the work. I learned the hard way, I am just like John Derrick below ...I have blocked all of my credit cards from Itunes and now only buy Itunes cards. Recently I contacted them to inform them fishy activity on my itunes account, mainly because there are about 600 songs that appear as me having purchased them, which I know for a fact that I never have, I have only purchased about 4 complete albums...and non of them are rap or hip hop, but they still have not responded to my inquiry. Im just wondering to who they are charging all of these songs to.
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cmacattack
11:58 AM on 03/19/2012
People should always er on the side of caution regardless of the site. It's the internet and nothing is 100% safe, even the Lifelock guy has had his SSN used. But considering the millions and millions and millions of Apple customers only 1,000 complaints over 4 years is really, really good.
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HUFFPOST SUPER USER
John Derrick
11:44 AM on 03/19/2012
This article is exactly why I only buy the i-tunes or app cards and use these for on-line purchases of apps/music. If you don't have to use your credit card...don't. Use other available means for purchase...just plain common sense. Just like not giving a credit card or bank account info for bills...I elect when and how much to pay a service provider and will never give anyone else authority to access my money; I reserve this only for myself.
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Querent
I say the things that have to be said.
01:45 PM on 03/19/2012
What's an app card?
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cmacattack
02:44 PM on 03/19/2012
It's the same as an i-tunes card but says App's on it instead. It can be used for anything in the i-tunes store it's just probably a marketing thing.
09:58 AM on 03/19/2012
Ignorance is always more expensive than Education. Online shopping is not safe. You might as well learn how to do it properly to avoid these type of issues, instead of whinning.

* clear your cookies and erase your history, don't store numbers and passwords online.

* Never provide your credit card information on a website that is not a secure site. Even if your PC is completely patched and protected, you still need to use caution when shopping online. Stick to online retailers you trust or have researched. Make sure that when it’s time to submit your credit card details, you’re on a secured site with a URL that begins with https

* Don't do your online shopping at a public place (coffee shop, library, school, work, etc...)

* Don't click on email links from anyone pretending to be your bank, credit card company, or other business who uses your personal information, even if the email looks legitimate. These links are often phishing scams and want to trick you into entering your login information on their fake website.

*Unauthorized charges on your credit card are the first indicator of credit card fraud. If you notice a charge you didn't make, no matter how small, report the charge to your credit card issuer immediately.

* Stop putting too much info on your social network sites (Facebook, Linkedin, Pinterest, twitter, etc...) that can be linked back your credit card

* For heavy online Shoppers, please get a Anti theft protection on your
08:47 AM on 03/19/2012
Stupid people ... Stop giving your personal infos and credit cards to Apple. Just Jailbreak that thing and get all the apps for free...dammmmmit
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09:09 AM on 03/19/2012
It is amazing isn't it.
10:00 AM on 03/19/2012
yes indeed
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HUFFPOST SUPER USER
Techboy308
the cake is a lie
01:19 PM on 03/19/2012
Right up to the point where the developers decide they don't feel like working for free. But hey, until then it's a free ride, right?
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Andrew Harvey
Don't F with the Jesus
04:48 AM on 03/19/2012
So where's the part where HP apologizes for the repeating the lies that NPR told about Apple and Foxconn?
11:02 AM on 03/18/2012
Sad, the entire economy is based on Apple.
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Erdgeist
per omnia extrema
11:48 AM on 03/18/2012
Yes, Apple and financial 'gaming institutions' located on Wall Street. But wait! We Americans spend about $220 billion a year at full-service restaurants! Not bad. (I will be going to my fav restaurant this Friday - I always take my iPhone so I can take pictures and send them to my friends.)
10:04 AM on 03/18/2012
Where have you guys been? Fraud is the acceptable new form of capitalism. See Wall Street.
09:52 AM on 03/18/2012
This is why I hate ecommerce sites that force us to store credit card information. I'd rather key enter it all every time I make a purchase.
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Pleasedontdelete
Silent compliance is no longer a valid course of a
02:36 AM on 03/18/2012
I wonder if this is a case of people downloading apps from unauthorized web sites.
A while back a story broke out about the iPhone being hacked, but it turned out that people were "jail breaking" their phones then adding apps that were never approved by Apple.

Not a single bank, credit card company, or even Apple could confirm any of the details?
07:40 AM on 03/19/2012
It isn't. It's something on Apple's end. I had this happen to me a month ago and my phone is not jailbroken. There were two apps downloaded to my account (that I had never heard of and were never on my phone at all) that downloaded over $130 worth of in app purchases to my account.
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Ed Haskell
Sometimes too much drink is barely enough...
01:02 AM on 03/18/2012
I guess that would be called "I-fraud?"
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ShambalaMountain
Kiss the Buddha.
11:46 PM on 03/17/2012
My PC slate is built in Japan and it's a full bore Windows 7 machine from which I can do my sketching, drawing, inking all with pressure sensitivity, in real-time without any lag. I can do touch screen, do pen only or do both on the resistant gorilla glass surface, I can use it as an e-reader for all my graphic novels, I can run flash, it has multiple USB ports. For me, the iPad is useless for my real-world applications. My Asus EP121 just blows it away...
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CaptainFrogbert
01:44 AM on 03/18/2012
It sounds like a great machine. And for $1,200 -- 2.5 times the price of an iPad -- it should be. Just as the iPad is much better than, say, a Kindle Fire, which is roughly half the price of the iPad. Apple never claimed the iPad would replace your laptop or desktop. It is what they claim it is. and it's pretty good at what it does. For the price.
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Durt Bagg
I know dirt.
10:09 PM on 03/17/2012
Come back next week when HuffPo finds out that this is a fake story. Apple checks every app in the app store (unlike Android) and will not allow any app that can use your credit card number, I know I have developed iPhone/iPad apps. You make the app, you submit it to the app store and about 2 weeks later you find out if they accept it or not, after they test it.
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Justtheobvious
Res-erected.
09:39 PM on 03/17/2012
Buying the ipad at a 400% markup should of been their first sign.
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HUFFPOST SUPER USER
Bavatar
06:14 AM on 03/18/2012
What are you even talking about. No one is buying iPads at that markup. You can just go buy one at the Apple store.
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Justtheobvious
Res-erected.
08:50 AM on 03/18/2012
You apparently haven't looked up how much it actually costs to make those ipads.