So how is iTunes used to launder IRS fraud?

Factual Questions
1

Just curious since there’s a scam going around like this one

One of the ways they get the victim is they tell them to buy iTunes gift cards and then read them over the phone. Somehow the criminal uses the entire amount on the card so the victim can’t cancel the card and get a refund. I was curious what they’re doing since they aren’t using it to buy their favorite Prince and Michael Jackson songs. (Some how they’re converting it to real money, just selling the card wouldn’t work since it’s already cashed out.)

2

You’ll often see US-issued iTunes gift cards selling for above face value on ebay and other sites. The main purchasers are people in other countries who want access to the US iTunes store. Apple won’t let you download anything from the US store unless you provide a US-issued payment medium (credit card, gift card, etc.). And there are many differences in what is available in the iTunes stores of different countries.

But an easy way to monetize the card would be to create a US iTunes account, add the value of the gift card to the account and then sell the account to someone who is desperate to buy something from the US iTunes store. When you redeem an iTunes gift card, the balance of the gift card is added to your iTunes account where it is stored until you buy something.

And, of course, they might have buyers who have already paid them for a US iTunes gift card and they are simply acquiring gift cards in order to fulfill the orders. If the buyer doesn’t quickly redeem the gift card, well, that’s their tough luck.

3

So in theory couldn’t Apple shut this down if a card was report as used in fraud by finding out what account it was credited to and either shutting down that account? I guess there’s the problem of how do you prove the card was used fraudulently though.