This happens all the time in China, you can buy 'accounts' and get Xbox Points, Wii Points, PS3 Points, Itunes accounts, Skype money, basically anything with an account that someone signs in to.
The sad thing is there's no way to stop it, some of it is them guessing/brute forcing passwords, phishing, stuff like that. There aren't really any rules in China.
The $1 you see on your statement is the company authorizing your card, checking your billing address, making sure YOU are who you say you are, and the card is valid, This happens with every company that charges to your card (usually) I've bought stuff from the apple store and it's there. Everywhere does it.
It usually gets refunded within a small amount of time. And sometimes you will never even see it.
Like the guy above me said, $50 is the limit for the law, so to avoid problems apple sets the bar under $50, and since the credit card is good and the info is correct it is accepted. Technically you could be lying, and decided to buy 3k worth of junk for no reason, but why would you do that especially with the risk of being ID'd as the culprit and then charged with more fraud.
It's really easy to get these accounts off taobao, a lot of people have 'sleepers' hanging around until their account gets sold.
I'm definitely taking my card off, I think you can order GC's from apple and amazon.com gives them to you online, that's what I do with my xbox. It's really the only way to be safe.
Paypal is a good option, aslong as your bank account isn't linked to it. Maby a second account that accepts gift money from your primary. If you owe paypal $8k they can't do anything about it really. They are not a bank.
If you have $0 in your Paypal they might suck it out of your checking, and your bank will be drained that way.
Apple is a really sneaky company, there's a reason why their one of the richest profitable companies. Steve loves to fork people with Hardware, it's all about profits these days and not about customer service. Customer Satisfaction is so 1950.
The only way to solve this problem, is to secure the internet, but that's impossible, there will always be someone trying to defraud you. Everyone could switch to Mac but then viruses and the like will start popping up on there too.
Just stick to using Gift Cards, even the 'gift' debit cards, that you go to walmart to buy a 'money pack' to stick on there.
IIRC now paypal has these money packs, so it's more transparent. You can get a PP Debit Card, and load it with money packs, then if anything goes wrong it's outside 'the system' and your bank account is ok.
But it's a big hassle, and we hate hassles.
The sad thing is there's no way to stop it, some of it is them guessing/brute forcing passwords, phishing, stuff like that. There aren't really any rules in China.
The $1 you see on your statement is the company authorizing your card, checking your billing address, making sure YOU are who you say you are, and the card is valid, This happens with every company that charges to your card (usually) I've bought stuff from the apple store and it's there. Everywhere does it.
It usually gets refunded within a small amount of time. And sometimes you will never even see it.
Like the guy above me said, $50 is the limit for the law, so to avoid problems apple sets the bar under $50, and since the credit card is good and the info is correct it is accepted. Technically you could be lying, and decided to buy 3k worth of junk for no reason, but why would you do that especially with the risk of being ID'd as the culprit and then charged with more fraud.
It's really easy to get these accounts off taobao, a lot of people have 'sleepers' hanging around until their account gets sold.
I'm definitely taking my card off, I think you can order GC's from apple and amazon.com gives them to you online, that's what I do with my xbox. It's really the only way to be safe.
Paypal is a good option, aslong as your bank account isn't linked to it. Maby a second account that accepts gift money from your primary. If you owe paypal $8k they can't do anything about it really. They are not a bank.
If you have $0 in your Paypal they might suck it out of your checking, and your bank will be drained that way.
Apple is a really sneaky company, there's a reason why their one of the richest profitable companies. Steve loves to fork people with Hardware, it's all about profits these days and not about customer service. Customer Satisfaction is so 1950.
The only way to solve this problem, is to secure the internet, but that's impossible, there will always be someone trying to defraud you. Everyone could switch to Mac but then viruses and the like will start popping up on there too.
Just stick to using Gift Cards, even the 'gift' debit cards, that you go to walmart to buy a 'money pack' to stick on there.
IIRC now paypal has these money packs, so it's more transparent. You can get a PP Debit Card, and load it with money packs, then if anything goes wrong it's outside 'the system' and your bank account is ok.
But it's a big hassle, and we hate hassles.