Fraud Associated with Apple Pay?
Apple Pay has put forth a solid effort to improve its security by utilizing EMV and built-in tokenization, but other shortcomings are being continually exposed. The main aspect that hinders the reputation of Apple Pay’s security lies in the connection between Apple Pay and banks. For these sensitive mobile payments, there must be a solid method of authenticating users and verifying payment cards, or else there is always the wide chance of criminal activity. In late February, there were reports that criminals were utilizing Apple Pay accounts in order to use their stolen credit and debit cards on their iPhones.
The out-of-band authentication is a process of authenticating a new Apple Pay user with a verification code that is sent to their phone via text. However, criminals can hack into this outdated method by transferring landline numbers to mobile phones that the criminals have in their possession. These days, since people rarely utilize landlines, most criminals can easily compromise this telecommunication method without having their victims notice in time. In addition, numbers can be transferred over another person’s number easily as telephone companies and mobile carriers rarely ask any questions. It’s almost like using your credit card at a store and the store clerk failing to ask you for your driver’s license for verification.
Banks need to implement stronger security and more reliable authentication methods, such as the use of biometrics or digital certificate encryption, in order to improve the safety of their users. In addition to the banks, users must buy in and cooperate with the program as well.
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