Apple Inc. (AAPL) Not At Fault Over Growing Apple Pay Fraud Cases

Apple pay may not be as secure as Apple Inc. (NASDAQ:AAPL) intended it to be as criminals are finding new creative ways around the payment system as banks continue to report increased number of fraud cases. Former White House CIO, Theresa Payton, speaking on Fox Business noted that it is not Apple Pay that has been breached but the initial authentication process that users use when making payments.

Banks have reported growing numbers of fraud cases mostly attributed to identity theft and not the hacking of Apple Inc. (NASDAQ:AAPL)’s encrypted biometric payment system. Criminals are essentially setting up new iPhones with stolen credit information that they use to initiate transactions with banks.

“The bad guys have gotten in; they have not hacked Apple Pay itself. They looked for the weakest link in the chain and what they found was if they bought stolen credentials on the cyber-criminal market bought some of your breached information. Like the last four digits of your social security number and popped it on an iPhone depending on the bank they set up the account with; they can mascaraed as you,” said Mrs. Payton.

Payton believes the problem at the moment is with the banks and not Apple Inc. (NASDAQ:AAPL)’s encrypted service as they race against time to popularize the payment system among their consumers. The vice has been accelerated by the fact that it is easy to purchase credit card details, as well as other personal data in black market sites.

The fraud cases essentially shows there is a lot to be done by both Apple Inc. (NASDAQ:AAPL) and Banks especially on the verification process to keep the criminals at bay.

“The first thing I would say to the banks that haven’t implemented this yet, try doing a pilot do a small group of customers first and test out your process. For consumers listening don’t abandon Apple pay, this type of technology is here to stay but there are a couple of things you can do to take control of your own private security before you set up that mobile wallet,” said Mrs. Payton.

Watch the latest video at video.foxbusiness.com

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