Clever iTunes scam is busted

[faceless]

Gang bought own music on iTunes and Amazon using stolen cards
Adam Fresco, Crime Correspondent
timesonline.co.uk
9th June 2009

The Metropolitan Police and the FBI have smashed an international criminal gang who made tens of thousands of pounds by buying their own records from Apple iTunes and Amazon with stolen credit cards.

The gang are alleged to have created several songs that they provided to an online American company who uploaded them to be sold on the two sites. Over four months from September last year the gang are said to have used 1,500 stolen or cloned British and American credit cards to buy $750,000 (£468,750) worth of songs. Amazon and iTunes, who were unaware of the fraud, paid royalties totalling $300,000 (£187,500).

Six men and three women were arrested this morning by 60 officers from the Met’s Police Central E-Crime Unit at addresses in London, Birmingham, Kent and Wolverhampton. Those arrested are being held in custody at several London and Midlands police stations on suspicion of conspiracy to commit fraud and money laundering.

A spokeswoman for Scotland Yard said: “The arrests are the result of a parallel investigation with the FBI that the unit began in February 2009. It was established that between September 2008 and January 2009 a UK criminal network provided music via an online US company who uploaded the tracks to Apple iTunes and Amazon.com for sale. It is believed that between these dates the criminal network instigated music sales of approximately $750,000 using 1,500 compromised UK and USA credit cards. Apple and Amazon, who at the time were unaware of the fraud being committed against them, paid royalties totalling $300,000 out on the sales. They have subsequently been assisting the police investigation.”

Detective Chief Inspector Terry Wilson, from the Police Central E-Crime Unit, said: “This has been a complex investigation to establish what we believe to be an international conspiracy to defraud Apple and Amazon. “This investigation, with its national and international dimension, exemplifies why we have set up this national response to e-crime. It shows the success that can be achieved through our close working relationship with the FBI.”

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I have to admit, I thought this was a great scam! Imaginative, blatant and not that greedy. But I'm guessing the amount of stolen cards being used for specific tunes that weren't otherwise that popular must have flagged something.

[seshme]

Does that mean that iTunes make 60% on each sale?