iOS in-app purchasing mechanism which lets you buy digital items in games, upgrade to full versions of apps and purchase additional content, has been cracked by a savvy Russian hacker who posted a proof of concept video, embedded below.
First noticed by Russian blog i-ekb.ru (via 9to5Mac), the hack is credited to Russian developer ZonD80 who runs the conveniently named In-AppStore.com website where he collects donations to support development of the project.
What's special about this method - and potentially devastating to the development community - is that it doesn't require a jailbreak and can be completed in a few simple steps by even the most inexperienced users. UPDATE: contrary to reports that Apple took the proxy site down, developer confirms it's simply under high load and says the info site is being moved to Blogger.