Hacked/unauthorized use of my iTunes account! PLEASE HELP!

Question

Within a short period of time on November 26th, my iTunes account was hacked by an unknown person that authorized my iTunes account on their computer and then they made several unauthorized purchases that I did not know anything about.
There are a total of 7 (seven) transactions that total $266.66--all seven transactions were made/purchased by an unknown person who hacked into my account.
All seven transactions were charged to my PayPal account.
I had authorized my iTunes account on two computers: my main home computer and my laptop. When I first logged into my iTunes account after finding out of this unauthorized use, I saw that that number of authorized computers was listed as 3 and there were 149 downloads that still hadn't been downloaded.
So, I'm being charged $266.66 through PayPal via my checking account for 7 transactions that I did not authorize or even know about.
I spoke online through the chat option on iTunes Support with three people: Jessie, Emily and Ray. Emily told me that iTunes cannot do anything and that I needed to contact PayPal. Emily cancelled out all the private data and Computer Authorizations on my account and advised me to change my password. She also gave me a claim number.
After I chatted with Emily I noticed the 149 downloads on my iTunes account that had not been downloaded. I got back on iTunes Support Chat online and talked to Ray. He verified that most of the unauthorized downloads were never even downloaded--the person who hacked into my account didn't even use all of the programs they "purchased"!
Ray cleared the unused downloads (there were 149 of them) and told me that since almost all of the downloads were never downloaded/used, that would show in my favor in making a claim that these iTunes transactions were fraudulent. He then advised me to contact both PayPal and my bank.
I contacted PayPal who would not do anything, I contacted my bank and filed a claim that the charges were NOT authorized by me. They credited the $266.66 back to me BUT NOW my PayPal account is NEGATIVE for the $266.66
My bank credited my checking account, but now I'm in the red with PayPal. PayPal's fraud/security department contacted iTunes about the fraudulent charges and iTunes DENIED PAYPAL'S CLAIM saying that the charges are not fraudulent!
I spoke to PayPal on the phone today for 45 minutes and they told me that since the charges for the seven unauthorized transactions were initiated by iTunes that iTunes needs to refund the charges in order for my PayPal account to be resolved.
I am stunned, shocked and amazed that there is no customer telephone support for iTunes and issues like this.
In my desperation to try and resolve this issue, I called Apple Technical Support and spoke on the phone with an agent named Adam and explained my problem to him.
He documented everything, gave me a case number, and suggested I e-mail iTunes and post here.
I have e-mailed iTunes and not gotten a reply.
I really need some help with this issue. I am an unemployed stay-at-home dad and this negative $266.66 has put me in the red quite terribly. Several of my monthly bills will not be paid this month because of this.
I *did not* make these purchases and I need some advice and/or help in trying to figure out how I can get this resolved.
The people with iTunes/Apple have more than enough evidence that my account was hacked/breached/used without my knowledge. With the unused downloads they cancelled, the added computer authorization, and my contact online via chat, they have more than enough evidence on their end to see that I have been a victim of fraud.
Can anyone offer me any advice on what to do? I would appreciate it more than anything.
Thank you SO much in advance,
Kev J.B.
Please contact me as soon as you possibly can, I would appreciate it very much.

Answer 1

What an awful position you've been placed in. If I were in your shoes, I would wait for my monthly credit card statement to arrive and then go into your bank and state that you did not authorise that specific transaction and you want it looked into. I've had two unauthorised transactions on my credit card (not with iTunes though), and I only noticed them once my monthly credit card statement arrived. I immediately rang my bank and I was told that it would be best if I went in person together with my statement, so they could lodge a claim. After several months the problem was resolved and I was credited back the amount. Both unauthorised transactions were by large well known company names and at first I thought that I stood no chance whatsoever in getting my money back or even proving that I didn't authorise both the transactions (two different transaction and not at the same time). Finally, I was informed that the other parties were not able to prove or show proof of me authorising the transactions and the matter was resolved. All you can do is try and keep trying until you get results. All the best and I hope this puts you at ease a touch. Paypal, right now your not being much of a pal, you need to get your act together and work out what has happened! Your service is suppose to make transactions through you secure, find out what's happened and fix it!