Yahoo! News is reporting about a 6-year old racked up a $420 bill playing games on her iPod. Playing a game called "Tap Zoo" she made in game purchases. I love one of the quotes "who in their right mind... would allow a $99 purchase for a bucket of stars?"
I too have been hit with this... My 4-year-old said to me the other day "Daddy how do I play this horsey game?" What happen to me, and the Smiths in the Yahoo! story, is; I installed an application for him to play and handed him the iPad. He played it for about two minutes and went back to the iTunes store and started buying more games. Lucky for me, he told me about it and did not go on a shopping spree.
In order to prevent this you need to update to the newest iOS. Go into Settings, General, Restrictions, and disable: Installing Apps, Deleting Apps, and In-App Purchases. You may also choose to disable iTunes to prevent the possibility of making purchases from iTunes.
John "Mike" Wright