Does iTunes (and iCloud) have a systemic security problem? [updated]

John Gruber doesn’t think so, but my experience and the experiences of countless others seems to show otherwise.

Back in late-January of this year, I received a curious email from Apple, indicating that my credit card information and billing address listed in my iTunes Store account had ben recently changed. Now, I never keep credit cards on file with retailers, nor do I have the iTMS linked to PayPal. I strictly adhere to a policy of making music, app and video purchases using only gift card balance, mainly out of concern that credit card account information stored anywhere outside my wallet or my noggin is inherently vulnerable, so I avoid it, when possible.

I logged into my iTunes account and found that, while my street address remained the same, my house had been magically transported to Townson, MD 21286-7840. Furthermore, my account balance, which had been about $34 the evening before, now hovered around 12¢. Apparently, after teleporting to Townson, I went on a spending spree, buying Fruit Ninja, Fruit Ninja HD, Angry Birds Seasons, Angry Birds Seasons HD, Plants vs Zombies, Plants vs Zombies HD, and so on, including a mystery lifestyle app titled “27000+ 天下美食.” Continue reading