Well with the help of commerce and calling Apple myself and doing some investigating we came to a conclusion of how my card was used fraudently.

ok here it goes-

whoever used it punched the numbers into a keyboard AND had my 3 digit code number from the back of the card.

After calling myself again to the 5 websites I used my card- not all asked for the 3 digit code and the ones that did ensured me the website is safe.

then we went onto store uses at and around the date of the Itune charge-
they are as follows

gas station
cvs
dunkin donuts
friendlys

ok by eliminating gas station and cvs the card stayed in my possesion the entire time- just swiped.

dunkin donuts in westbury had to give to employee behind register- man in his 40's

friendlys in east northport on larkfield road- had to hand to employee- cc number on receipt- A TEENAGER at register.

so after conclusion it is assumed this kid remembered the 3 digit code and prob wrote it down as soon as we left. yes its an assumption but one we all came up with.

Speaking to Apple if the pending transaction actually goes through- there will be a full investigation- they can find out who it is by an URL or cell phone depending on what they did download music to an ipod from the computer or music to a cell phone.

Commerce too will do a through investigation too.

so bottom line is watch who you are handing over your CC/Debit cards over too behind the counter-

I am placing a sticker on the 3 digit code so that NOONE can do this to me again. I'll find a nice one from scrapbooking Chat Icon