Chinese hackers crack iTunes Store gift codes, sell certificates

A group of Chinese hackers has succeeded in cracking Apple’s algorithm for encoding iTunes Store Gift Certificates, and are creating discounted certificates using a key generator. Outdustry reports that a number of the codes are available on the site Taobao, with $200 cards selling for as little as $2.60.

The owner of the Taobao shop offering the cards admitted that the codes are created using key generators, and that he paid to use the hackers’ service. He also said that while the price of the codes has dropped steadily, store owners make more money as the number of customers grows.