The great iTunes-PayPal hack that mightn't be a hack at all

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August 24th, 2010 - Posted by Kent

Many iTunes customers are finding their PayPal accounts suddenly drained of cash due to unauthorized charges. No one knows the cause, but that doesn't stop people from guessing. Some blame Apple (because people love blaming Apple), some blame a Microsoft vulnerability, and some blame iTunes users themselves. We'll withhold judgment, but all are possibilities, and no matter if the fault lies with the big companies or the user, this incident demonstrates just how new technologies, and new forms of commerce, create new crimes.

Fortunately, consumers don't have to be victims. While you and I are not responsible for Apple's or Microsoft's security protocols there are things that we are responsible for:

1) Checking bank and credit card balances. Sign up for electronic alerts on from your bank. Many banks allow you to set a notification limit; if your account drops below a certain dollar amount they'll let you know via SMS or email.

2) Watching out for phishing scams. Hackers often use phony electronic alerts to phish passwords and other sensitive data from victims. Don't click on links in emails, and be sure to double-check the address of any website you visit before entering personal data.

3) Create complex passwords. Using the name of a loved one, or a predictable numerical combination like "1 2 3 4 5" is a big security risk. Use letters, numbers, and symbols to create something unique and hard to guess.

4) Keep your Internet security software up to date. If the last time you paid for Internet security software is over a year ago, chances are you're not getting the security updates necessary to keep your computer safe. If you're not using Internet security software at all, it's time to start.

5) Keep your computer up to date. Your computer requires maintenance, just like your car. Fortunately, software updates from Microsoft and Apple are free, so take advantage. These updates often patch serious security holes.

6) Invest in identity theft protection. An identity theft protection service can alert you to data theft and fraudulent activity related to your credit.