Self-driving cars could be on Britain's road within a decade
Previous
RANDOM
Next
Tech
Original

Banks Changing Apple Pay Procedures After Fraud

by March 8, 2015
Original
Positives

“Apple Pay is designed to be extremely secure and protect a user’s personal information,” the company said Thursday in an e-mailed statement.

Negatives

Some banks have begun to make changes in how they activate customers’ credit-card accounts to use Apple Inc.’s new mobile-payment system after reports of fraudulent transactions, according to industry consultants.

Rating
Our Rating
User Rating
Rate Here
Originality
90%
100%
Value
80%
83%
Our Rating
100%
User Rating
1 rating
You have rated this

Some banks have begun to make changes in how they activate customers’ credit-card accounts to use Apple Inc.’s new mobile-payment system after reports of fraudulent transactions, according to industry consultants. The effort is an attempt to thwart criminals who have been typing stolen credit-card numbers into Apple Pay and trying to make purchases with their iPhones.

The breaches follow Apple’s October introduction of the service, which lets owners of the new iPhone 6 and 6 Plus load their credit and bank cards on their smartphones and use them to make purchases at cash registers equipped with a proper wireless connections.

“This is a black eye that needs to heal through improved authentication procedures,” said Richard Crone, chief executive officer of Crone Consulting LLC. Some banks are now requiring users to call them to activate Apple Pay, to ensure that their identities haven’t been stolen, he said.

“It comes down to making sure that the data that is being provisioned to a device is to a device of a cardholder,” said Al Pascual, director of fraud and research at Javelin Strategy & Research, who also was aware of some banks making changes to their activations.

Major banks and credit-card companies teamed up with Apple to develop Apple Pay, which uses the world’s largest payment networks’ tokenization products, a system that replaces some account information with a digital ID for online and mobile purchases.

“Apple Pay is designed to be extremely secure and protect a user’s personal information,” the company said Thursday in an e-mailed statement.

What's your reaction?
I Love It
50%
Cool
0%
It's OK
0%
What?
0%
I'm Sad
50%
I Hate It
0%
Profile photo of sainath devulapalli
sainath devulapalli
CEO of Entrepreneurs Mingle
Fonts by Google Fonts. Icons by Fontello. Full Credits here »