The Chinese iTunes Gift Voucher Trick

While there are some legitimate digital music download sites in China – including 9Sky, Top100 and the recently launched Wawawa – digital music is proving to be a tough sell in the P.R.C, partly because of the market dominance of Baidu’s free mp3 search. There are, however, people making decent profit in this as yet unmeasurable market: the hackers of Apple’s iTunes store gift vouchers and their local agents.

In China’s biggest C2C online shopping site Taobao, $200USD iTunes gift cards are for sale at 17.9 RMB, roughly $2.6 USD.

There are thousands of cards for sale at the same time. Choose one seller whose Taobao IM is online, talk to him a little bit, purchase his product and pay money to Taobao’s online payment system, Alipay, which supports most banks in China.

All the seller actually sells is the gift voucher code which they send you directly through Taobao’s IM software. You can then redeem the card in your iTunes account:

Once successfully redeemed you then click ‘confirm’ and Alipay transfers your 18 RMB to the seller and you are free to start downloading:

The owner of the Taobao shop told us frankly that the gift card codes are created using key-generators. He also said that he paid money to use the hackers’ service.

Half a year ago, when they started the business, the price was around 320 RMB for 200 USD card, then more people went into this business and the price went all the way down to 18 RMB per card, “but we make more money as the amount of customers is growing rapidly.”

“The hackers are based in China, but I don’t know if they do the same thing in eBay”, the Taobao shopkeeper said.”Most of our customers use iTunes store for music, then Apple applications (bear in mind that the iPhone is only available in the grey market in mainland China) and films. iPod games are least popular.”

So, this gives Apple a depressing price point for its iTunes services in an otherwise unfathomable online music market: $2.60 (18RMB) for $200USD worth of products.

© Outdustry 2009

100 comments.

  1. [...] Chinese hackers have cracked the codes used for iTunes Store vouchers using key-generators, and as a result are selling $200 voucher codes for as little as $2.60 online. That’s according to a report on music industry blog Outdustry. [...]

  2. Kudos to Outdustry.com for breaking out the story: basically, it looks like Chinese crackers are now able to generate iTunes vouchers redeemable on the iTunes Music Store.

    Unsurprisingly, these vouchers are sold online in China (look for yourself). In case you’re wondering how long it will take for these to show up on Ebay, here’s the answer.

    How’s that for a security leak? Very, very bad.

  3. Ha ha. Chinese hackers aim. ?Free, freedom, sharing?

    The United States too much money. Economic crisis is because they are. So let apple is also no loss of.

    Have Fun $_$

  4. [...] VIEW ARTICLE SOURCE [...]

  5. [...] The Chinese iTunes Gift Voucher Trick [...]

  6. Likely there’s no such thing as a key generator (it would be very stupid of Apple to use anything but (pseudo)random gift certificate codes).
    Instead either the seller or his supplier is using stolen credit card numbers to buy the vouchers.
    As soon as the card owner discovers that his/her card has been stolen, several people may have redeemed vouchers bought with the card. Also see http://reviews.ebay.com/US-iTunes-gift-certificates-bought-with-stolen-cards_W0QQugidZ10000000006868109

  7. has anyone in the states tried this yet?

  8. [...] possibility, but that won’t solve the situation of legal cards already in the market. [Outdustry and Taobao via [...]

  9. [...] formula and are creating lots of $200 gift card numbers, which they are selling for very cheap (reportedly as low as $2.60). The solution for Apple is to change the algorithm, but that would be problematic for the massive [...]

  10. [...] innebär att de kan generera egna koder som sedan fungerar i iTunes för att köpa musik. Enligt Outdustry så knäcktes koden redan för ett halvår sedan men det är först på senare tid som [...]

  11. [...] today picked up on a post by the music industry site Outdustry.com which asserts that hacker in China have figured out a way to produce usable iTunes gift cards, and [...]

  12. [...] Read the original: Outdustry — The Chinese iTunes Gift Voucher Trick [...]

  13. [...] grupo de hackers en China consiguen decodificar la llave secreta de las tarjetas de regalo iTunes, y venden certificados para compras en la famosa [...]

  14. [...] na temat voucherów do sklepu iTunes znajduje si? mi?dzy innymi na blogu Outdustry. iTunes applemusic.pl Powi?zane posty:Zmiany w umowie licencyjnej iTunesDRM, sprzeda? [...]

  15. [...] Out Fake iTunes Gift Cardsby anonymus Well, this is disturbing.AppleInsider today picked up on a post by the music industry site Outdustry.com which asserts that hacker in China have figured out a way to produce usable iTunes gift cards, and [...]

  16. [...] possibility, but that won’t solve the situation of legal cards already in the market. [Outdustry and Taobao via [...]

  17. [...] Shi from music industry consultancy Outdustry writes that on Taobao, China’s biggest C2C online shopping site, $200 iTunes gift cards are on sale [...]

  18. [...] ??????? ???? Outdustry, ?????????? ???? «????????????? ? ??????????? [...]

  19. [...] this to be fixed as quickly as Apple can manage it, but according to reports Chinese hackers (those enterprising guys) have cracked the algorithm behind the codes on iTunes [...]

  20. [...] quite free, but close to it. In China you can buy $200 iTunes gift certificates for 18 RMB (roughly $2.60) on [...]

  21. [...] however, faces a potential setback as it appears that a group of Chinese hackers have apparently cracked the algorithm that generates the individual codes found on iTunes gift [...]

  22. [...] problem on its hands with iTunes gift cards. According to Chinese record industry consultancy firm, Outdustry, the algorithm behind the cards has been cracked and as a result $200 voucher codes are being sold [...]

  23. Ok, why would anyone even try doing this, since if China cracks down on these people(which, at least with hackers, they are doing more and more) and discover customer lists, you are screwed. If you want music, use bittorrent, at least then you have a much better chance of getting away with it.

  24. [...] possibility, but that won’t solve the situation of legal cards already in the market. [Outdustry and Taobao via [...]

  25. How can you not mention the absolutely free and legal downloads from http://www.google.cn/music ?????? Admittedly it’s just a variant on Top100.

  26. [...] Gizmodo – Music Ally – Outdustry – Taobao | Imagen: Watblog Certificados de regalo de iTunes muy [...]

  27. [...] ??:The Chinese iTunes Gift Voucher Trick [...]

  28. i just bought a couple 200$ i tunes gift cards from the links supplied, 10$ each! just follow the instructions listed (though i’m sure they weren’t meant to be used) and wha-la, you’ve got a great deal. of course, you could just email me, and i’d sell you a 200 for 20 bucks, and do it in english. either way, apple’s gonna need to fix this, cause its just too easy.

  29. [...] [Via Outdustry] [...]

  30. [...] news for the day is that Chinese hackers have figured out a way to generate iTunes gift codes, and are reportedly [...]

  31. [...] Uncategorized Expect this to be fixed as quickly as Apple can manage it, but according to reports Chinese hackers (those enterprising guys) have cracked the algorithm behind the codes on iTunes [...]

  32. I tried to buy a card, but it is really hard to navigate without knowning Chinese. Plus to pay you need to be part of a Chinese bank. How did you pay areoneoh?

  33. [...] bol : Musically, Outdustry, [...]

  34. ok guys, sorry i was soliciting. i just managed to weave my way through the website using an online translator. i paid using paypal, like anout of ebay settlement (wire 10 buck to an email, they im you the code.) anyways, i sold the extra codes i had, there are no more. the sellers took notice, though, to all the attention they were getting, and now cards are going for around 40 or more us dollars. some snooty chinamen called me stupid for wanting one for anything less. looks the the door was open, and now its shut.

  35. [...] THE CHINESE ITUNES GIFT VOUCHER TRICK – Outdustry (iLounge??) In China’s biggest C2C online shopping site Taobao, $200USD iTunes gift cards are for sale at 17.9 RMB, roughly $2.6 USD. [...]

  36. [...] this to be fixed as quickly as Apple can manage it, but according to reports Chinese hackers (those enterprising guys) have cracked the algorithm behind the codes on iTunes [...]

  37. [...] Kreditkarten bezahlt wurden, der jetzige Vorfall ist aber weitaus pikanter: Da es sich um reguläre Gutscheincodes handelt, lassen sich die gecrackten Codes nicht herausfiltern. Selbst wenn der Algorithmus [...]

  38. [...] so&#108ve &#116he si&#116ua&#116ion o&#102 &#108ega&#108 cards a&#108ready in &#116he marke&#116. [Out&#100ustry and Tao&#98ao vi&#97 [...]

  39. [...] soll die illegal erzeugten Gutscheincodes von lokalen Hackern gekauft haben, wie man gegenüber Outdustry zugab. Die Preise für das bereits seit einigen Monaten laufende Geschäft, das jüngst aber durch [...]

  40. [...] macnotes.de | outdustry.com Bookmark It Autor: Matthias No Comments, Comment or [...]

  41. [...] [...]

  42. [...] owner of the online shopping site told Outdustry that he paid the hackers to use their service. When the sales of illegitimate gift cards was [...]

  43. [...] proprietario di Taobao ha rivelato ad Outdustry di aver scoperto, grazie all’aiuto di esperti hackers (lautamente ricompensati), l’algoritmo [...]

  44. [...] [ Outdustry ] [...]

  45. [...] 47 dólares, pero ahora la gran oferta y demanda ha hecho que el precio baje a 2,60 dólares. Como indican en Outdustry, los vendedores señalan que "ahora ganamos más dinero ya que la cantidad de clientes está [...]

  46. [...] Outdustry notes, the price was around 320RMB, but because of the competiton from other sellers have brought the [...]

  47. [...] variazione sul tema: circola nella Rete la notizia che alcuni hackers cinesi abbiano violato l’algoritmo di generazione dei codici delle iTunes Card, vendendo online a pochi dollari dei codici che accreditano molti soldi sugli account [...]

  48. [...] SiteMap March 11, 20095:23 am Apple iTunes Gift voucher hacked, $200.00 card for $2.60 An Apple iTunes gift card with a face value of $200.00 can be bought for as low as $10.00 at China’s biggest C2C online shopping site “Taobao” with reports that they are selling for as cheap as 17.9 RMB, or roughly $2.60. Apple has not officially commented on the matter yet but it seems a change will have to be made to the current algorithm. All that required is, pick from the thousands of cards available for sale. Choose one seller whose Taobao IM is online, talk to him a little bit, purchase his product and pay money to Taobao’s online payment system, Alipay, which supports most banks in China, reports Outdustry. [...]

  49. Hope Apple will catch all of them soon.
    And make them pay.

  50. [...] Gizmodo via Outdustry [...]

  51. [...] Codierung schon vor einem halben Jahr entschlüsselt, erzählt ein Onlineshop-Betreiber dem Outdustry-Blog. Er hätte den Hackern eine Menge Geld bezahlt, um in den Besitz eines Code-Generators zu [...]

  52. Why sell it a damn cheap price if they really work???I think shops selling these cards actually are scam

  53. [...] the plastic cards you see in stores. Really, it’s not a new phenomenon. Sadun quoted an article in Outdustry which explains that a $200 iTunes code can be had for $2.60, when just six months ago it was [...]

  54. [...] this to be fixed as quickly as Apple can manage it, but according to reports Chinese hackers (those enterprising guys) have cracked the algorithm behind the codes on iTunes [...]

  55. [...] [via Outdustry] [...]

  56. [...] Outdustry broke the story,  interviewing the owner of the site where hundreds of iTunes gift cards are on offer. [...]

  57. [...] berichtet, ist es chinesischen Hackern gelungen, den Algorithmus zu knacken, mit dem Apple die Gutschein-Codes erzeugt. Mit einem eigenen Key-Generator fabrizieren sie dann neue Codes, die dann zum Dumpingpreis [...]

  58. [...] Chinesische Hacker haben Apples Gutschein-Algorithmus für den iTunes Store gebrochen und verkaufen ihre selbsterstellten iTunes-Einkaufskarten nun – mehr oder weniger öffentlich – im [...]

  59. [...] publicó una noticia que indica que hackers chinos lograron romper el algoritmo que Apple usa para las tarjetas prepagadas de iTunes y que permite descargar videos y [...]

  60. i’ve got a tutorial up on my site (click my name) if you can’t figure out the chinese site, and want a card.

  61. [...] is according to Outdustry who said that low price sales of iTunes Store gift codes at this Chinese website TaoBao is because [...]

  62. [...] bought seem to come from China.There are rumors that the iTunes gift card creation scheme has been hacked, which would make sense but it hasn’t been confirmed for [...]

  63. [...] to Outdustry, iTunes gift cards have been pirated, and China’s biggest C2C online shopping site, Taobao, [...]

  64. [...] According to Outdustry, which describes itself as a music industry consultancy specializing in the Chinese music business, sellers on China’s largest consumer-to-consumer online shopping site are marketing these illegitimate vouchers directly to customers. [...]

  65. [...] US$ 2,60 você pode comprar 200 dólares de crédito na loja virtual da Apple, como informou a Outdustry, uma consultoria focada na indústria da [...]

  66. [...] to Outdustry, iTunes gift cards have been pirated, and China’s biggest C2C online shopping site, Taobao, [...]

  67. [...] Outdustry: The owner of the Taobao shop told us frankly that the gift card codes are created using [...]

  68. There are no “key generators”, they are using stolen vouchers and credit cards to buy the iTunes cards then selling cheap for profit at all consumers expense. All iTunes cards are verified against gift card transaction servers just like virtually every other gift cards in the US. Regardless of the method – keygen, stolen credit cards, etc., – it is all fraud and all wrong – people should not support this activity in any way. –S from Texas, USA

  69. [...] hackers target Apple gift cards — Get your own $200 iTunes gift card for $2.60. (Kids, don’t try this at home unless you want to go to jail.) Tags: co:Apple, [...]

  70. [...] site Outdustry a révélé qu’un groupe de hacker chinois avait réussi à cracker l’algorithme employé par [...]

  71. [...] Deu no Outdustry. O e-commerce chinês Taobao contratou hackers para quebrarem o algoritmo dos Gift Cards da iTunes [...]

  72. [...] belated revelation, courtesy of OUTdustry on the flow of cheap music from iTunes via codes sold in China – a practice obviously [...]

  73. [...] to Outdustry, iTunes gift cards have been pirated, and China’s biggest C2C online shopping site, Taobao, [...]

  74. [...] mucho tiempo, pero alguien en China lo ha logrado con las iTunes Gift Card con lo que puedes obtener tarjetas con valor de 200 dólares americanos [...]

  75. [...] Vía | Outdustry [...]

  76. [...] Hacker haben den Algorithmus geknackt, mit dem Apple Gutscheincodes für den iTunes-Online-Shop [...]

  77. [...] to Outdustry, iTunes gift cards have been pirated, and China’s biggest C2C online shopping site, Taobao, [...]

  78. [...] is reporting that China’s biggest C2C online shopping site, Taobao, is the platform used for selling the [...]

  79. they dont have them anymore

  80. [...] The somehow legitimate gift cards are sold on Taobao, the biggestEbay-like site in China. A $200 gift card can be bought for as little as $2.60 and the buyer gets a gift voucher code from the seller via Taobao’s integrated instant messaging platform. The code can then be used to redeem the card from a user’s iTunes account, according to Chinese blog Outdustry.” [...]

  81. now all the ads have been pulled, thanks to you outdustry.com, we can’t get cheap itunes gift cards anymore.

  82. [...] décor pour les personnes qui ne serait pas au courant: il y a quelques jours nous apprenions par le site Outdustry que des numéros de cartes iTunes sont vendus en masse sur des sites internet chinois. En [...]

  83. [...] Codierung schon vor einem halben Jahr entschlüsselt, erzählt ein Onlineshop-Betreiber dem Outdustry-Blog. Er hätte den Hackern eine Menge Geld bezahlt, um in den Besitz eines Code-Generators zu [...]

  84. nothing but less that at least a +2y jail sentence for those Chin fucks would be nice.

  85. [...] news for the day is that Chinese hackers have figured out a way to generate iTunes gift codes, and are reportedly [...]

  86. It’s soo easy to crack most gift cards, some companies just don’t realize how easy it is and don’t have any form of verifications in place.

  87. the key combination will only be activated after buying it

  88. [...] The somehow legitimate gift cards are sold on Taobao, the biggest Ebay-like site in China. A $200 gift card can be bought for as little as $2.60 and the buyer gets a gift voucher code from the seller via Taobao’s integrated instant messaging platform. The code can then be used to redeem the card from a user’s iTunes account, according to Chinese blog Outdustry. [...]

  89. [...] diesen Angeboten – doch so einfach ist es nicht mehr an diese billigen Codes heranzukommen. Dem Outdustry Blog zufolge konnte man sie über die chinesische Webseite Taoboa.com beziehen. Dich zum einen [...]

  90. Another angle I’ve seen mentioned frequently was not that the codes were cracked, but that stolen credit cards and money laundering came into play: http://www.wisebread.com/inside-the-shady-world-of-cheap-itunes-gift-cards

  91. [...] funzionamento lo ha svelato Outdustry, una società che fa consulenza per l’industria musicale ed è specializzata in [...]

  92. [...] to Outdustry, iTunes gift cards have been pirated, and China’s biggest C2C online shopping site, Taobao, [...]

  93. 中华人民共和国万岁!

  94. [...] Following a report on the blog of Chinese music industry consultancy Outdustry. [...]

  95. [...] Outdustry The Chinese iTunes Gift Voucher Trick Posted by root 23 minutes ago (http://outdustry.com) Chinese hackers have cracked the codes used for itunes store vouchers using key generators and as a result are selling 200 voucher codes for as little as Discuss  |  Bury |  News | Outdustry The Chinese iTunes Gift Voucher Trick [...]

  96. [...] this to be fixed as quickly as Apple can manage it, but according to reports Chinese hackers (those enterprising guys) have cracked the algorithm behind the codes on iTunes [...]

  97. [...] [Outdustry] btntype = 7; col1 = '#FFFFFF'; blog_id = 1229; url = 'http://geekseed.com/archives/2009/03/%d0%b4%d0%b2%d0%b5%d1%81%d1%82%d0%b0%d0%b4%d0%be%d0%bb%d0%b0%d1%80%d0%be%d0%b2%d0%b8-itunes-%d0%b2%d0%b0%d1%83%d1%87%d1%8a%d1%80%d0%b8-%d0%b7%d0%b0-260-%d0%b4%d0%be%d0%bb%d0%b0%d1%80%d0%b0/'; Tweet [...]

  98. [...] 淘宝上购物,受到的“误导”过多 来打个比方,淘宝好比是银泰百货商场(杭州人都知道),淘宝的工作 人员好比是银泰百货大楼的工作人员,淘宝上的卖家店铺好比是银泰里面的一家家专卖店,现在的淘宝,有很多很多促销专题,为的是为卖家带去更多的人气和单 子,这就好比银泰的工作人员跑到大街上搞促销活动来拉客是一样的,但不要忘记,淘宝网是一个平台,更多是给用户(卖家和买家)一个健康的有品质保障的平 台,而不是过多的干扰用户的选择,淘宝更应该花大力气提高用户对于淘宝品牌的忠诚度,剔除一些假货,销脏商品。 [...]

  99. Una guida veramente molto carina.Ho capito veramente tante cose oggi! Ciao e Grazie!

  100. vouchers.o2.co.uk
    Great blog post! You get a Google +1 from me…

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