Banksy is notorious for his secretive and subversive stunts such as sneaking doctored versions of classic paintings into major art galleries.
Banksy has replaced Hilton's CD with his own remixes and given them titles such as Why am I Famous?, What Have I Done? and What Am I For?
He has also doctored pictures of her on the CD sleeve to show the US socialite topless and with a dog's head.
A spokeswoman for Banksy said he had doctored 500 copies of her debut album Paris in 48 record shops across the UK.
She told the BBC News website: "He switched the CDs in store, so he took the old ones out and put his version in."
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