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iTunes Gift Card Key System Cracked, Exploited
moonbender writes "Fake but working iTunes gift cards are being sold on Chinese auction sites for a fraction of their value: 'The owner of the Taobao shop told us frankly that the gift card codes are created using key-generators. He also said that he paid money to use the hackers' service. Half a year ago, when they started the business, the price was around 320 RMB [about $47] for [a] $200 card, then more people went into this business and the price went all the way down to 18 RMB [about $2.60] per card, "but we make more money as the amount of customers is growing rapidly."' The people at Chinese market researcher Outdustry have apparently confirmed this by buying a coupon and transferring it into an iTunes account. Oops."
It's still easier to use BitTorrent.
There's no -1 for "I don't get it."
"but we make more money as the amount of customers is growing rapidly."
Brilliant business model there, Taobao. I used to feel bad that Amazon's MP3 Service only worked inside the United States but now it's pretty clear: I doubt Apple will have much luck prosecuting anyone in this case whereas it would have been different had it happened on American soil.
... hahahaha sorry, couldn't quite say that with a straight face. Seriously, we must look like ripe-for-the-picking rubes to places like China. They're sitting there with free copies of Vista, Adobe Suites and now cheap "legal" music. I guess it will forever remain a mystery to them why their nation isn't home to prosperous software & music industries while the status quo is free for the taking with no repurcussions.
I'm sure the Chinese government will help protect Apple's
My work here is dung.
I'd be interested to know what algorithm was being used for the keycards. Did Apple use a weak scheme, did someone leak the secret, or (most interestingly) has someone managed to crack a good encryption algorithm.
(Alas, I'd guess it's probably a weak scheme. As recently as two years ago I noticed a bike products retailer was actually using sequential codes for its gift cards)
The other side to this is that when a legitimate customer buys a card that's code has already been found using a keygen their card won't work, I hope Apple has a refund system. The joys of security through obscurity in action.
They HAVE to keep a database for the cards anyway, to keep track of every code that has already been used (can't have you using the same gift card twice now, can they?) How much harder could it be to keep track of every code that has actually been sold? But even then, there is a window of opportunity: if someone can guess your code between the time it is activated and the time you use it, then they've got your gift certificate and you don't. (This really IS stealing.) My advice to anyone who gets a gift certificate would be to use it as soon as possible. Personally, I feel gift certificates are stupid anyway -- why give somebody the equivalent of cash that can only be used at one store and which becomes worthless if that store declares bankruptcy, when you could just as easily give them cash, or a money order, or a check, or any number of other instruments that could be redeemed anywhere. I once received a gift certificate in a Christmas card that was delivered accidentally to my address, and I was able to go ahead and use it. Couldn't have done that with a check or money order, could I?
I've abandoned my search for truth; now I'm just looking for some useful delusions.
Personally, I think that will become the downfall of our county.
Our main products that we're making here are things that can be easily recreated at no cost. Sure, we've got laws that attempt to stop it, but many places don't.
We've shipped most of our jobs making actual products overseas. And we wonder why China is becoming so powerful? They're making physical goods, and freely recreating our virtual goods.
I once received a gift certificate in a Christmas card that was delivered accidentally to my address, and I was able to go ahead and use it.
You just admitted to comitting a Federal crime, son, and a Felony at that. If I were you, I'd shut the hell up and never mention your this "freebie" to anybody.
why give somebody the equivalent of cash that can only be used at one store and which becomes worthless if that store declares bankruptcy, when you could just as easily give them cash, or a money order, or a check, or any number of other instruments that could be redeemed anywhere.
Maybe because they'd prefer to get a gift card? When I get cash, I feel like I need to put it in savings, use it responsibly, etc etc. A gift card to a restaurant or store I like to buy fun stuff in is permission to have fun with it. If you're giving them a gift with the intention of them having fun, a gift card says that clearly. Of course, not everyone feels the same way I do, but part of the point of giving one gift over another is knowing which one the receiver would like most to receive, rather than just which one you'd rather give...
Warning: Apple/Nintendo fangirl. Likes her electronics cute & cuddly. May be rabid.
No, there is no currency exchange going on, the 'gift card' tells iTunes to exempt you from paying for the tracks as you have already presumably payed apple for the gift card. Apple is still paying the artist 70% of the cost of the music being downloaded, and they are paying in real currency.
For lack of a better signature...
Except that I am sure Apple has to hand over a certain amount of money to the record labels. So a $200 card, they may have to hand over $180, and they get nothing from the consumer.
So actually something is being stolen, from Apple to the Music companies. They don't miss out, they would be loving this. All of a sudden, they are getting millions from Apple due to China.