Apple Pay, the mobile payment system created by Apple Inc., has been the target of a wave of fraudulent transactions using credit card information stolen in recent data breaches involving major retailers. Target and Home Depot are among the companies that had their stolen data used to make purchases on Apple Pay.
Around 80% of the fraudulent transactions have been for expensive products at Apple stores, which possess more valuable merchandise than most of the companies that use Apple Pay, such as Whole Foods Market and Panera Bread Co. By entering stolen card information into smartphones, the fraudsters are able to make purchases without a physical card being present.
The Apple Pay system itself was not hacked, so users are not at risk as a result of these crimes. Banks are responsible for verifying customer information before cards can be used with phones and are working to resolve new challenges presented by mobile payment systems, which Samsung and Google have also developed to compete with Apple Pay.
Read more here – “Apple Pay Stung by Low-Tech Fraudsters,” (Robin Sidel and Daisuke Wakabayashi, Wall Street Journal)
Kyle Burgess is the co-founder of two social enterprises and has worked in strategy, communications, and program management for a decade. Kyle received her Master’s degree in International Relations & Economics from the Johns Hopkins School of Advanced International Studies (SAIS) and her Bachelor's degree in Political Science from American University.