Well, it didn’t take long; some financial institutions are seeing an increasing number of frauds on Apple Pay as criminals take advantage of vulnerabilities in the verification process when users add a credit card. Banks are working to secure the verification process right now. A payment expert who works with retailers and banks with mobile-payment strategies, Cherian Abraham, said fraud is becoming more prevalent and banks can’t tell the bad guys from the good guys. He said it’s not unusual to see fraud making up of about six percent of Apple Pay transactions; fraud involving plastic cards is about 0.1 percent.
A spokesperson for Apple didn’t comment on fraud rates, but said the program is “designed to be extremely secure and protect a user’s personal information.” The weakness isn’t on Apple’s end, but before, when a user adds a card. The verification process where banks add their cards to Apple Pay can sometimes be very lenient. The criminals taking advantage of these weaknesses are highly sophisticated.
