Fraud Rampant In Apple Pay

PvtVoid writes with this report from the New York Times, excerpting: An industry consultant, Cherian Abraham, put the fraud rate [for Apple Pay] at 6 percent, compared with a traditional credit card fraud rate that is relatively minuscule, 10 cents for every $100 spent. [i.e. one tenth of one percent]. The vulnerability in Apple Pay is in the way that it — and card issuers — "onboard" new credit cards into the system. Because Apple wanted its system to have the simplicity for which it has become famous and wanted to make the sign-up process "frictionless," the company required little beyond basic credit card information about a user. Nor did it provide much information to the banks, like full phone numbers and addresses, that might help them detect fraud early. The banks, desperate to become their customers' default card on Apple Pay — most add only one to their iPhones — did little to build their own defenses or to push Apple to provide more detailed information about its customers. Some bank executives acknowledged that they were were so scared of Apple that they didn't speak up.

Comments

Re:Aren't these already compromised cards?

[DogDude]

It's easier to punch stolen numbers into a phone than it is to print up an actual card. When chip + pin happens, all of the criminals will be using Apple Pay.

Re:Aren't these already compromised cards?

[jellomizer]

So if you use Apple Pay, you have less of a chance of getting YOUR credit card data stolen... However if your credit card had already been stolen, Apple Pay means there is a higher chance of it getting used. Because you won't need to face someone who may question your identity.