Members of a gang consisting of members in Kent, Derby, Birmingham and Wolverhampton have been banged up, after netting around £500k from buying their own "music" through iTunes using stolen credit card details.
The scam exploited a royalty system which lets musicians receive their royalty payments direct, after paying a fee to a distributor and uploading their own tracks to iTunes and Amazon.
Once their "material" was online to buy, they then bought stacks of laptops, acquired some stolen credit card details and recruited friends to make small transactions through the sites, buying their own tracks and racking up £500k between January of 2008 and June 2009.
The scam was uncovered after iTunes discovered "they were paying royalties to what appeared to be utterly unknown artists in the Wolverhampton area at a rate they expect to pay to someone like Madonna." [BBC]