Over the weekend, we reported that iTunes was hacked (read here) by a rogue iPhone developer had managed to make his apps 42 of the top 50 places in the Books category in the App Store. So we've finally gotten a press release from Apple about the subject and it says that "the developer in question, called Thuat Nguyen has been kicked out of the app store. However, the do not say clearly that fraud had happened, but if you are concrerned at all about this matter, they say to contact your bank and stop your card if any of your info was stolen... which implies that something did actually happen.
The developer Thuat Nguyen and his apps were removed from the App Store for violating the developer Program License Agreement, including fraudulent purchase patterns.
Developers do not receive any iTunes confidential customer data when an app is downloaded.
If your credit card or iTunes password is stolen and used on iTunes we recommend that you contact your financial institution and inquire about canceling the card and issuing a chargeback for any unauthorized transactions. We also recommend that you change your iTunes account password immediately. For more information on best practices for password security visit http://www.apple.com/support/itunes.
So, Steve's walled garden has a hole in it, but it seems like only a very small amount of people have been affected by the problem. Long live iTunes!