With the introduction of Apple’s new simple paying system, vulnerabilities have been discovered in the system which has lead to fraudster’s targeting Apple Pay. The new quick and easy mobile way of paying for items is usually secured by requiring fingerprint recognition on iPhones. But the issue now is that these hackers have found a way to simply use a different iPhone and setting the payment up on them instead.
By stealing customer’s identity and credit card details, fraudsters are using these details to setup Apple Pay on another iPhone, bypassing the need for the original user’s fingerprint. Banks were initially caught off guard by the sheer number of fraudulent transactions that they had to move fast to counter these attacks. By introducing extra levels of authorisation before transactions could be complete will hopefully stem the number of purchases made by these hackers.
Apple’s strict fingerprint verification should have been enough to safeguard the new technology as it tried to replace having a wallet to carry around. Hackers could not crack the actual fingerprint verification so instead they have found a way to bypass the security altogether by concentrating on replicating the customer’s details instead. These criminals are then using other iPhones to purchase high valued goods from Apple stores as they obviously accept Apple pay and sell expensive items to then be sold for cash.
Apple Pay is set to eclipse Google Wallet in terms of popularity with 800,000 US customers already registering over 1.1million credit and debit cards by the end of 2014, only two months after launch. The US is already behind the rest of the world when it comes to security in paying by card. The chip and pin system, popular and used for years in Europe will only be compulsory in the USA by the end of 2015. Cards with magnetic strips are still commonplace, highly susceptible to fraud.
With stronger and stricter security measures coming into place from banks in the fight against fraud, Apple Pay will no doubt iron out the creases and make it far easier and quicker to pay for goods by simply using your mobile phone.
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