Posted on 03/04/2015 8:14:33 AM PST by 11th Commandment
It didn’t take long for fraud to find its way to Apple Pay.
Some banks are witnessing a growing incidence of fraud on Apple Inc.’s mobile-payment service as criminals exploit vulnerabilities ......
The problem was brought to light in late February ..by Cherian Abraham, ..... He said fraud “is growing like a weed, and the bank is unable to tell friend from foe.”
Mr. Abraham said it isn’t “an anomaly” for fraud to account for about 6% of Apple Pay transactions, compared with about 0.1% on transactions that involve swiping a credit card.
Banks pay Apple 0.15% of every transaction made on Apple Pay, a concession that the company won by persuading them that its payments service was more secure than the conventional credit-card swipe.
(Excerpt) Read more at wsj.com ...
Another Apple Fail.
Steve Jobs just rolled over again.
Hodar you might be interested in this article.
This fraud is really an issue with a percentage of the participating banks and how they “validate” the customer’s account when they set up that bank’s Apple Pay “credential”. The banks with this insufficient user validation will quickly fix their processes since they are the ones being hit by this organized crime fraud.
“Apple Pay: Only Sixty Times More Fraudulent Than Credit Card Swiping. Get Yours Today!”
I saw this coming when I watched the first advertisement for the service. If someone can hack Jennifer Lawrence's phone for nude pictures, they can hack your phone for the stored image and authorization codes for your credit card.
“Another Apple Fail....”
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IMHO you are not comprehending the problem. It’s a problem with certain participating banks and not with Apple or Apple Pay.
“...If someone can hack Jennifer Lawrence’s phone for nude pictures, they can hack your phone for the stored image and authorization codes for your credit card.”
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You also are not comprehending the problem. The fraudsters are not “hacking someone’s phone for data”; they are defrauding the banks directly using iPhones owned by the fraudsters.
Also, Merchants need to do math. They are paying APPLE .15% to reduce fraud which is only occurs in .1% of transactions with swiped cards(?)
This story is FUD
The Apple gang said Apple Pay was fraud proof.
Who can dispute blind fanatics? Certainly not reality!
I figure apple has so much money they own the banks.
Another Apple bright, shiny, “elegant” solution sold with much hype and highly overpriced.
“We’re fraud proof” and hyping foolproof security is bleeding in front of sharks. An open invitation for hackers and criminals to prove them wrong and shove it up Apple’s collective ass.
Computers for dummies, fraud prevention for the weak minded by telling them you don’t have to know anything, Apple will tell you what you need, you believe us when we say we’re secure and you have to live by Apple rules.
ping...
“...Merchants need to do math. They are paying APPLE .15% to reduce fraud which is only occurs in .1% of transactions with swiped cards(?)”
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You don’t understand Apple Pay. The merchants don’t pay Apple anything. The card-issuing banks have agreed to pay a per-transaction fee to Apple and the banks get that from the fee they have always charged the merchants for the use of their card on the transaction. So the use of Apple Pay has not increased the cost of either the merchant or the customer using the card.
Maybe the problem is with NFC. Sticking something in something will always be better than just getting close.
The article says what the problem is - criminals are using stolen credit card numbers, authorizing a phone to make purchases, the buying stuff. The weakness is in allowing stolen cards to be authorized, not at the point of purchase. Basically Apple pay has replaced creating fake cards with stolen numbers.
Might not get an iPhone after all.
Ok- then banks need to do the math..
Wondered how long it’d take for us to hear these stories. Thing is that there is absolutely no mode of transaction that’s 1,000% foolproof, there’ll always be a way to sneak thru a scam. Doesn’t make iPhone good or bad, but it just makes it not that much better than what we already got.
“Maybe the problem is with NFC. Sticking something in something will always be better than just getting close.”
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That’s what my wife always tells me.
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