The algorithm that generates codes for iTunes gift cards was apparently no match for a group of hackers in China who managed to create $2.60 gift cards worth $200 in the iTunes Music Store.
Gizmodo reports, “According to the blog of Outdustry—a music industry consultancy firm in China—the market is getting inundated with these pirate cards, with prices falling quickly… In fact, the prices are dropping dramatically as the number of vendors selling these cracked cards increase.”
These hacked vouchers have apparently been available for 6 months on Chinese online store Taobao for around $47 per $200 card, but the price has plummeted dramatically as demand increased.
If these counterfeit gift cards become available for purchase around the world, Apple could have a potentially disastrous situation on their hands, so they will likely be changing their algorithms shortly. As Gizmodo notes, however, “that won’t solve the situation of legal cards already in the market.”