ApplePay Bank fraud being fixed Ping!
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Posted on 03/07/2015 8:20:37 PM PST by Swordmaker
The Apple Pay service makes it easy for consumers to pay for purchases with an Apple iPhone 6. But some banks are now making it tougher for customers to set up an Apple Pay account.
Banks are clamping down on their verification processes for the Apple Pay mobile-payment system after crooks started loading stolen credit-card data onto phones and then making fraudulent purchases. Some of that stolen card information has been tracked back to accounts that were compromised in Target’s big data breach at the end of 2013 and the Home Depot hacking last year.
The banks are making customers jump through more hoops because they want to make sure that card really belongs to the person who is loading it into the phone.
The bank may send a one-time authorization code to the customer’s email or mobile phone that must be entered into the Apple Pay set-up. Other banks may ask the customer to call a toll-free number where a customer-service representative will try to verify the person’s identity with a series of questions about recent purchases or a home address.
(Excerpt) Read more at blogs.wsj.com ...
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You know ... I’ve seen talk of the “low information voter” out there ... BUT ... here on Free Republic we have the “low information reader” who seemed to think (earlier) that there was a problem with Apple Pay from Apple’s side. These people can’t read things with “comprehension” apparently.
THIS should make it clear “WHO HAS THE PROBLEM”. The BANKS are the ones with a PROBLEM and they’ve recognized their problem and are fixing it.
Apple is not fixing it, but the BANKS “are” fixing it!
The article said ... “Some of that stolen card information has been tracked back to accounts that were compromised in Target’s big data breach at the end of 2013 and the Home Depot hacking last year.”
— — —
A few months ago I had one of the card companies tell me that my card was compromised. I did not see any unauthorized charges show up on it at any time, so it was not “that” type of thing which caused my card to be compromised. And I did use that card at Home Depot, so I guessed that this was the reason why the bank replaced my card.
Now, the fact that my card was compromised had nothing to do with the way I used it or having someone get my information off my card (like a clerk at a store or some waiter at a restaurant). It was a hacker break-in at Home Depot that did it.
SO ... if someone had used my card info on their iPhone, using Apple Pay on their iPhone, that would have nothing to do with Apple Pay or a problem with that system. That’s a problem with some hacker stealing actual credit card info from some big retailer.
IF I had been using Apple Pay back then (when Home Depot was hacked, even though it wasn’t active at that time) ... there would have been NO WAY any hacker could have gotten the credit card info from Home Depot. That’s because Apple Pay does not allow Home Depot to have the credit card info! Now THAT is good security!
“You know ... I’ve seen talk of the “low information voter” out there ... BUT ... here on Free Republic we have the “low information reader” who seemed to think (earlier) that there was a problem with Apple Pay from Apple’s side. ...”
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Yep, the odds are that only a very small percentage of the comprised cards belong to individuals who even have an iPhone—probably the same percentage as the percentage of adults in the overall population who have iPhones.
If you make any purchase that might be atypical for your purchasing pattern, your credit card automatically gets flagged.
Bump for later
Willful ignorance.
Most likely, wishful ignorance.
I was doing a major project at my girlfriend's house, and then a complete remodel of one of my rental properties. As a result I used four of my cards, two debit and two credit, at home depot right in the period in question. ALL FOUR of those cards were compromised. Two were cancelled by the banks and two I found had fraudulent charges on my bills in the past four months. Two of them I had registered on my ApplePay. Both of those I had new cards issued and I got an email from my bank informing me that my ApplePay had been updated to reflect the new cards. . . all with out me having to do anything on my iPhone to indicate the cards were being replaced. The banks handled it.
I have American Express and I have Visa from BoA.
Amex emails me every time my card has been used, and they watch it like a hawk because my Amex bill is usually a couple thousand a month. On the BoA Visa, it is tagged to my other accounts and reporting and they have the option to set thresholds for email notification of use. I set them at the minimum (like any use at all), and I get an email notifying me. Both of these pretty much takes the worry out of having my cards misused.
Someone help me understand how credit card fraud happens.
I completely understand the fake card or fake number part.
But how do people avoid detection or arrest by more basic security measures?
If you go to a major store, they often have high definition video of you in the store.
They often have high definition video of your car and license plate number in the parking lot.
If you charge more than $100, they routinely ask to see your Drivers License, which means you have to have a fake card plus a fake License with the same name, and they might check that the address on your License is the same as your charge card billing address, and they might check that your phone is actually linked to that address.
Or, let’s say you call in a charge on something. They immediately have a record of the phone number you are calling from, and they will question you if you block your phone number in some way. Then, the product you want to steal has to be shipped to a real physical address, which introduces more ways to get caught.
How do people get away with this crime more than a couple times?
No, what we have is some Freeeper pushing buttons of the die hard Apple supporters.... :)
But on a serious note, banks are not to smart. They are paying Apple .15% to prevent fraud in .1% of transactions. Then they don't follow protocol and increase fraud 600%. No wonder why they need a bail out every 30 years.
Thieves aren’t frequenting the stores you mentioned. They target smaller less secure venues—gas stations and smaller stores on the other side of the tracks...
Smaller purchases made with multiple cards add up.
Wish it were true. Every bloody time I buy a game on Steam or make a purchase thru the SC store in EQ/EQ2, I have to call em up and beg to use my card. Even after telling them over and over I use these sites often...
Now, the fact that my card was compromised had nothing to do with the way I used it or having someone get my information off my card (like a clerk at a store or some waiter at a restaurant). It was a hacker break-in at Home Depot that did it.
I didn’t have to guess. IIRC, the bank specified that they were replacing my card because of the Home Depot hack.IF I had been using Apple Pay back then (when Home Depot was hacked, even though it wasn’t active at that time) ... there would have been NO WAY any hacker could have gotten the credit card info from Home Depot. That’s because Apple Pay does not allow Home Depot to have the credit card info!
You’d think Home Depot would be begging customers to use ApplePay to preclude the possibility of a repeat of THAT fiasco!THAT is what has me thinking about ApplePay, even tho I haven’t felt that a smartphone suits me particularly.
I’m home a lot, so I can FReep on my desktop Mac with full keyboard. Not that much occasion to wish for a smartphone, as such - but ApplePay has me interested.
That, and the camera on the 6+ . . .
Pretty badly out of the habit of taking pictures, tho. But I do now have the right (5K Retina) monitor to view photos on . . .
That Apple Pay is simply the next-generation in security for purchasing and credit cards. I can’t see why some others can’t see that. Perhaps it’s just that they don’t understand the technical details of it, so they just think it’s “more hype” and nothing more.
I don’t have to dig into all the detailed programming, though, to understand the technical aspect of it, that it’s the next great advancement, technically, into security for your purchasing at all levels!
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