Fraudsters use credit cards gap on Apple Pay: What you need to know

Fraudsters use credit cards gap on Apple Pay: What you need to know -

A recent discovery of the fraud perpetrated by the Apple system Pay has been the source of the technology company troubles. The payment system has been hit by a wave of fraudulent transactions, mostly by themselves Apple stores using credit card information stolen of recent data breaches. According to the Wall Street Journal, about 80% of these unauthorized purchases were expensive items like iPhones and iPads, which have a high resale value for thieves. It is important that consumers know that Apple Pay system has not even been hacked . Instead, scammers are just using it as a platform to carry out criminal activities with stolen cards. This is not to high-tech fraud by any means, but it sure is annoying for Apple and banks to process. Furthermore, it illustrates the point that Apple Pay and other mobile payment services have a lot of kinks to work before they can be considered secure payment methods.

How Apple Pay addressed fraud?

This was a bit of a setback for Apple, which has touted its mobile payment system securely from the beginning. However, the issue here is less with Apple and with banks that have decided to work in partnership with Apple Pay before properly address the necessary changes in their own security measures. Many banks have jumped at the opportunity to partner with Apple Pay, and the list of banks and credit cards that work with the payment system is growing. To fight against these fraudulent purchases, banks are now starting to make customers jump through hoops more to establish credit or debit cards on Apple Pay.

These additional security requirements can include sending a unique authorization code for mobile phone or e-mail a person, asking customers to connect to their online bank account for verification and even require customers call a toll-free number to speak with a representative who will try to confirm their identity based on the questions on previous purchases or personal information, such as their home address. As mobile payments become more prevalent, it is up to the banks and the implementation of corporate payment systems to enhance - or completely overhaul -. Security Procedure

security breaches stolen data has a long life

Another thing consumers can learn from these recent fraudulent purchases made with stolen credit cards on Apple Pay is just how long the card data stolen in cyber heists remains valid. Because most banks do not issue replacement cards in the event of a data breach, many people whose information was stolen in offenses like those seen in Target, Home Depot and other retailers in the two years may still be at risk. That is why it is important to always check your card statements thoroughly , so you can catch all the fraudulent charges as soon as possible. It is also a good idea to consider signing up for the service identity protection against theft - this service can help monitor the black market on the Internet to ensure that your personal information is not used illegally traded or sold, and many also provide credit monitoring to help you keep an eye on what is happening with your credit reports. You can learn more about these services by reading our reviews of protection against identity theft.