Well, his account was probably sold in china, it's common (at least it still was a few months ago) on taobao (the chinese ebay), they sell you "gift cards" to be used within 12h after purchase, it's in fact accounts. I guess that's why Apple started to ask CCV for purchases.

There's also a practice in China to use apps as a kind of fraud, or maybe money laundering. I've seen once a chinese wallpaper app, with each wallpaper for sale at $99, making thousands on the appstore.. when you think about it, it's easy to post an wallpaper app, set the price, and you get money through Apple, without any traces.

What I really hate about all this is that Apple still force you (or make it very difficult not to) to have a CC linked to your itunes account, even though you plan to never buy anything.