IPhone :: ITunes Disabled - Credit Card Hacked

First post here, but this is the best forum I've found so hope you can give some advice.I received a new iPhone 4 through my employer yesterday, but when I tried to download the employer apps I needed from the Apps Store, I got the message that my iTunes account was disabled and I needed to contact Apple Support.

Although I've not purchased anything through my iTunes account in almost a year, I was notified by Discover Card Fraud division last week that someone had used my credit card to purchase approximately $80 worth of goods through iTunes. (The card was not used for any purchases other than iTunes.) I rarely use this credit card, but it was the one tied to my iTunes account. Luckily, Discover caught the purchase or I would not have known until I received a statement. Anyway, we agreed to immediately shut the account down and they sent me a new card and I thought the issue was resolved.

Before I even hooked up my new phone to the PC, I opened my iTunes account and changed the attached credit card to the new one. Saved with no problems, but when I go to the Apps Store I still receive the same "account disabled" message. I even tested further and cannot purchase anything including music.

So I contacted Apple iPhone Support last night and got a really great support person who became the mediator between me and iTunes Support (since you can't call them). Bottom line, three hours later, the issue was unresolved and remains unresolved today. This is a WORK phone. I am not interested in buying any music, videos, or TV shows. I am simply trying to download my company's free apps from the Apps Store that will setup my email and calendar sync. I even tried to setup a new iTunes account, linked it to my PayPal account, and used a different email, but am still getting the same message. I explained this to Apple Support, they agreed this would not work but were very vague about why.

Totally frustrated, and ready to pack up and return the iPhone, as a last resort I called the Discover Fraud number a little while ago. They tell me that this situation with iTune purchases and stolen credit card numbers is almost at epidemic levels now and has greatly increased over the past few months. Was their customer database breached?

I received an email early this morning from Apple Support telling me they are sorry for the problem and will get back to me as soon as possible, but I just don't understand why this is so hard to fix! Like I said, the bogus purchases were NOT made from my iTunes account so why isn't it sufficient just to change my credit card number and restore the account?

Sorry to sound so frustrated, but I really love this phone and want this to work. I so very much do not want to return to my Blackberry, but I must be able to get my work email, tasks and calendar info.