In the weeks leading up to the launch of Apple Pay, there were many among its defenders in the media that were saying that it was secure. Some were even touting it as more secure that using a credit card or debit card.
In an article that appeared in mashable.com titled, “Why Apple Pay Is the Most Secure Payment Platform on the Planet” the author Rex Santus made the following claim;
Despite worries about someone stealing your phone or it being susceptible to hackers, experts say Apple Pay actually adds significant security to your payment transactions, even more than traditional credit cards.
At Utbblogs, we highlighted several security issues with Apple Pay in the following article last October with the latest one being in March. We mentioned that there were security flaws that allowed a user to add a credit card that did not belong to him or her to their Apple Pay account on a smartphone.
In several tests that were carried out, a Consumer Electronics editor, Glenn Denere was successfully able to both add and use a credit card that was not his to purchase goods and services with Apple Pay. Unfortunately for Apple, this problem is still occurring six month later and is not going away.
In an article titled, “Will Apple Pay be secure enough for Canadians?” security expert Cherian Abraham made the following observation
One expert, Cherian Abraham, writes that Apple Pay fraud may have reached six per cent of all transactions at certain banks, that’s sixty times the average rate of fraud for credit cards.
Another expert, Aite Group’s Julie Conroy mentioned that in some banks the number is as high as 8 percent.
So you would think that Apple would have owned up and would be very hard at work trying to fix this problem, but instead they have passed the buck onto the banks. Instead of building identity proofing solutions into their app to ensure that only the owner of the iPhone is able to add their card into the app, they have tossed the blame on the banks.
“We’ll see: Credit account information will flow between the customer and Apple at some point, somehow,” said Hiltzik. “Apple’s systems haven’t been anything like secure in the past, so the company’s promise that this one will be rock-solid shouldn’t be taken as gospel.”
Hiltzik says while it is true that no exchange of credit card information exists between the consumer and retailer, criminals are already exploiting the Apple Pay system by then. Crooks have begun loading stolen credit card info onto iPhones. “That’s where the system breaks down,” says the reporter, as he says Apple simply throws up its hands and shunts off the verification of cards off to the banks.
This just confirms what we have been saying all along. Apple Pay has vulnerabilities and is not as secure as they claim. Organized crime rings are already responsible for millions of dollars in fraud charges and that number continues to grow every day.
As noted in Pymnts.com, “in a particularly fun irony, Apple Stores are favorite locations to target because they take Apple Pay and sell high-price goods with large resale values.”
So folks if you really value your security, there is a company that you can trust. A company whose phones on its latest operating system has never been hacked. A company that the US President Obama, UK Prime Minister David Cameron and other world leaders that German Chancelor Angela Merkle rely on to keep their communications secure. A company that will not allow your private pictures to be hacked and distributed over the internet. The name of that company is BlackBerry.