iPad, iPhone Owners Complain about Fraud in the App Store

A growing number of customers are complaining about fraudulent charges on their iTunes account. For example, tech writer Ryan Matthew Pierson’s account was dinged $437.71 for in-app purchases from iMobsters, a game which he has never played. Although the problem was eventually resolved to his satisfaction, it required quite a bit of time and energy to get the charges reversed.

Unfortunately, it’s fairly easy for criminals to get access to stolen iTunes credentials. On some Chinese sites, you can buy account login information for just $33 per account.

The problem is impacting App Store developers as well, particularly those located in China. Some mobile development firms report actual sales were 20 to 50 percent less than they originally believed because of fraudulent transactions. “We are very worried about reputation,” added developer Jian Huang. “We have no way to tell the customer that we’re victims too.”

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