Apple Pay Appeared to be Vulnerable to Scams

The Apple Pay is being increasingly exposed to fraud, despite the high level of protection of the technology proper. According to Payspace, encryption of the credit card data, a built-in chip for storing transaction data and a fingerprint reader for authentication of the owner of the iPhone payment service do not solve the security problem. The vulnerability is noted when entering credit card data in a mobile wallet.

Banks which cards are already connected to the Apple Pay have reported an increase in fraud cases. Some incidents have been recorded since the launch of the payment service last October, but now the fraud has reached the alarming proportions. At that, the banks have serious problems with the identification of the illegal transactions.

The deal is that the scammers link compromised credit card data they previously steal at ATMs, in online stores or by other means to an Apple mobile wallet. Afterwards, they are free to use the iPhone to pay for goods from another account.

Making purchases with the help of the stolen payment information might also be possible in an online store. However, during the 24 hours allocated for delivery of the goods, the retailer can detect the fraud and return the products to the warehouse. On the contrary, the Apple Pay offers the immediate payment of the goods, thereby significantly complicating the struggle against the fraud of this type.

Recap: the contactless payment technology based on the NFC chips embedded in iPhone 6, iPhone 6 Plus and Apple Watch is developed in cooperation with such leading brands as Visa, MasterCard, and American Express.

Source: macdigger.ru