Apple Pay hit by high levels of scams
Apple Pay is taking off in the US, however, it isn't all peaches and cream. Banks have been surprised at the level of payments being made with card details, leaving them desperately trying to find and fix the flaws in security and trying to quickly work on better verification and checking systems.
It is worth pointing out that criminals haven't cracked open Apple Pay's secure encryption system, but rather, they're setting up new iPhones with stolen personal info and then ringing banks up to set up cards on the phones, before spending victim's money.
Why Apple Pay? Well, one of the reasons that they're being targeted is because you can buy expensive things at Apple Stores with Apple Pay. Then, all you have to do is flog your ill gotten gains down the pub for cash, and you're away.
Reports suggest that total losses have already run into millions.
A spokesman for Apple says: "Apple Pay is designed to be extremely secure and protect a user’s personal information. During setup Apple Pay requires banks to verify each and every card and the bank then determines and approves whether a card can be added to Apple Pay. Banks are always reviewing and improving their approval process, which varies by bank."
So, it looks like banks need to do a bit more when it comes to customers' security regarding NFC payments and the like. If you're worried that this all feels like a disaster waiting to happen, stick to Chip & Pin or cash-only, until the flaws get ironed out.