Nothing was hacked. Social engineering at it's finest.
First you call Amazon and tell them you are the account holder, and want to add a credit card number to the account. All you need is the name on the account, an associated e-mail address, and the billing address. Amazon then allows you to input a new credit card. (Wired used a bogus credit card number from a website that generates fake card numbers that conform with the industry's published self-check algorithm.) Then you hang up.
Next you call back, and tell Amazon that you've lost access to your account. Upon providing a name, billing address, and the new credit card number you gave the company on the prior call, Amazon will allow you to add a new e-mail address to the account. From here, you go to the Amazon website, and send a password reset to the new e-mail account. This allows you to see all the credit cards on file for the account — not the complete numbers, just the last four digits. But, as we know, Apple only needs those last four digits. We asked Amazon to comment on its security policy, but didn't have anything to share by press time.
Amazon has done this sort of thing for YEARS. My parents have asked me to buy items on Amazon on occasion and instead of them having to re-pay me, my Mom just gave me her CC info. I plugged it in and purchased the item. In this case, the billing address matched the ship-to address, which helps, but you'd still think Amazon would question why *I* am putting in someone else's CC info and address.
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