Apple has banned dozens of applications from its iTunes digital store after bogus purchases from hundreds of compromised customer accounts drove the apps to the top of the popularity charts for paid electronic books.

Apple said it banned a Vietnamese developer using the name Thuat Nguyen for violations including “fraudulent purchase patterns” and removed his apps from the store. But other apps also enjoyed a sudden rush to bestseller status, suggesting that hackers were using the same techniques more broadly.

An Apple official declined to rule out a direct breach of Apple’s systems. But account log-in names and passwords also could have been captured through deceptive e-mails or computer viruses that record keystrokes.

Stealth attacks aimed at consumers typically go after banking information or log-in data for e-commerce sites. But the rapid growth of paid downloads has presented a new way for criminals to turn pilfered personal information into cash.

The incident is the most dramatic violation to date of Apple’s iTunes marketplace for songs, videos and applications. Apple has touted its procedures as inherently safer than those fostered by competitors such as Microsoft and Google, which does not vet apps before they appear on the store serving Android mobile phones.

Apple victims complained that their accounts had paid more than $100 to buy apps from Mr Nguyen. Some said they were able to get the charges to their credit cards reversed, while others said they were still struggling to get their money back.

Based on the number of sales it takes to make it into the bestseller lists and the number of weeks Mr Nguyen’s wares appeared there, Mr Nguyen could have netted more than $1m, said independent developer Alex Brie. Mr Brie faulted Apple for being slow to realise that Vietnamese-language books were doing suspiciously well.

Mr Nguyen could not be reached for comment.

Apple suggested that affected users change their passwords. “If your credit card or iTunes password is stolen and used on iTunes we recommend that you contact your financial institution and inquire about cancelling the card and issuing a chargeback for any unauthorised transactions,” said Apple official Trudy Muller.

(Source: CNN)