When Apple announced its payment system “Apple Pay”, almost all the major banks in the US said that it is a positive step. JPMorgan Chase, WellsFargo, Citigroup, Bank of American and American Express even lined up in order to give support for Apple Pay NFC backed payment method. But now, the media is reporting a number of fraud cases reported by banks. Banks are now skeptical about Apple Pay’s security. Security is the single most important factor in the modern day payments. ART hacks and credit card information breaches are becoming common and even a single fraud case can tarnish Apple Pay’s user trust.
An article on the New York Times reported that it is true that fraud cases are being reported in the media, but banks are to be asked about this and not the Apple Pay.
The source quoted Cherian Abraham, a payment industry experts, who says that Apple Pay fraud is ‘growing like a weed’. Apple Pay hasn’t even started rolling out all over the country and users are just gearing up to sign-up for the new payment system. Fraud report at this time can kill Apple Payment system before it even gets mainstream.
The source said that Apple has made it practically impossible to breach credit card information via Apple Pay. When an Apple Pay transaction takes place, the vendor sees a new, at-the-sport-generated credit card number and the actual customer data never gets revealed. This means that the fault is at the Banks’ end. Banks, in a hurry to get signed-up for customers’ default credit card bank for Apple Pay service, failed to issue credit cards with improved security and layers. This problem is making it difficult for them to differentiate between intruders and real Apple Pay users.