Apple Pay Fraud

wA wave of stories is hitting about Apple Pay fraud, and some moves to mitigate it.  Very interesting.  The Wall Street Journal headline says low tech fraudsters are having success.

Here is one write-up:

http://www.theguardian.com/technology/2015/mar/02/apple-pay-mobile-payment-system-scammers

Here is a snippet from that piece:

Criminals in the US are using the new Apple Pay mobile payment system to buy high-value goods – often from Apple Stores – with stolen identities and credit card details.

Banks have been caught by surprise by the level of fraud, and the Guardian understands that some are scrambling to ensure that better verification and checking systems are put in place to prevent the problem running out of control, with around two million Americans already using the system.

The crooks have not broken the secure encryption around Apple Pay’s fingerprint-activated wireless payment mechanism. Instead, they are setting up new iPhones with stolen personal information, and then calling banks to “provision” the victim’s card on the phone to use it to buy goods.

Here is the WSJ though you'll need a login to see the story:

http://www.wsj.com/articles/apple-pay-stung-bylow-techfraudsters-1425603036?mod=WSJ_hpp_MIDDLENexttoWhatsNewsThird

One of the first articles I read on this was here at The Verge:

http://www.theverge.com/2015/3/4/8149663/apple-pay-credit-card-fraud-banks

Apple maybe moved a bit too quickly with Apple Pay.  Cashiers don't know what it is, consumers aren't using it (except in apps) and fraudsters are hitting it hard.

Happy Reading,

J.W. Gant