Apple Pay Fraud: Banks Need to Become Vigilante for Authentication

FREMONT, CA: Apple continues to work on simplifying technology that eases the daily life task such as payment through card. But the more the world becomes smarter, the more is the threat of fraudulent activity. Fraudsters are actively involved in purchasing stolen credit cards through Apple Pay and the rate of such malicious activity has increased nearly by 6 percent, reports Cherian Abraham on DropLabs Blog.

Apple Pay was introduced to provide the simplest payment process through smartphone eliminating the need of any cards or identification. But the devices’ easy to setup feature gives more freedom for fraudsters to load any stolen cards onto iPhones and make purchases.

David Bozin, VP of Business Development at Bindo, writes on TheNextWeb that most of the times the fraudster tries to find loopholes at the level where banks verify card for activation after loading the details onto the phone. To activate, bank needs to ask few security question through customer service employee who handles number of calls everyday. The fraudsters take benefit of this vulnerability and easilyuse the mobile payment service for their shopping.

While Apple ensures security of the customer details and personal information but banks need to be too careful in identity verification process while activating any card for smartphone. One option for the company to tackle the issue is to go for multi-factor authentication by changing the security question from traditional setup questions.