Yesterday reports were flying in that a "major security hole" in iTunes accounts linked to PayPal was being exploited. The problem turns out not to be a "major security hole" associated with iTunes accounts but rather a phishing scam that's actually pretty common. The scammers found a way to charge thousands of dollars to iTunes accounts through PayPal. One particular user who contacted TechCrunch reported 50 charges from PayPal of $99.99 each and luckily caught it in time before his bank distributed the funds to PayPal. Unfortunately, not everyone was able to catch the charges before funds were transferred but PayPal is reimbursing users for the fraud. An Apple spokesman did comment that the company is aware of the issue.

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blockquote>"Among other new security measures iTunes now requires more frequent re-entry of a customer's credit card security code," the spokesperson said. "But if your credit card or iTunes password is stolen and used on iTunes, we recommend that you contact your financial institution and inquire about canceling the card and issuing a charge-back for any unauthorized transactions. We also recommend that you change your iTunes account password immediately."

So if you have not already done so, we highly recommend you check to make sure your account is safe and check out Rene's write up on how to minimize the chance of your iTunes account being hacked.

[TechCrunch]