Scammers Taking Advantage of Apple Pay

Scammers Taking Advantage of Apple Pay

Scammers have figured out ways to manipulate Apple Pay, allowing criminals to use the platform to buy items with stolen identities and credit cards, according to a report.

“The crooks have not broken the secure encryption around Apple Pay’s fingerprint-activated wireless payment mechanism,” says Charles Arthur of The Guardian “Instead, they are setting up new iPhones with stolen personal information, and then calling banks to ‘provision’ the victim’s card on the phone to use it to buy goods. Criminals with the stolen IDs are understood to have targeted Apple Stores in particular because they both accept Apple Pay and offer high-value items, which can then be sold on for cash.”

Apple has responded, saying this is a problem on the banks’ end given that Apple Pay requires banks to verify each card and approve whether or not a card can be added to Apple Pay.

Banks are looking to implement better verification and checking systems to prevent this from occurring going forward. The secure encryption of Apple Pay has yet to be broken.

Tim Sloane, vice president of payments innovation at the Massachusetts-based financial consultancy Mercator Group, said: “These are probably just some teething problems. If the banks can nail down the authentication, they should see less fraud on Apple Pay,” and added: “Battle plans always look great until you meet the enemy.”

About the Author

Matt Holden is an Associate Content Editor for 1105 Media, Inc. He received his MFA and BA in journalism from Ball State University in Muncie, Indiana. He currently writes and edits for Occupational Health & Safety magazine, and Security Today.

  • Becoming a Guide on the Customer Journey Becoming a Guide on the Customer Journey

    In this episode, Security Today editor-in-chief Ralph Jensen chats with Chris Hugman of System Surveyor about the customer journey. As the company’s chief executive officer, Hugman continues to work toward his vision of seamless systems management from concept to system end-of-life. He also addresses what it takes to be a guide in the security industry and why it is different from the traditional sales process. Originally a systems integrator, Hugman reveals his thoughts on technology and the prospects of the customer journey over the next few years, as well as the direction of technology.

Digital Edition

  • Environmental Protection
  • Occupational Health & Safety
  • Spaces4Learning
  • Campus Security & Life Safety