Criminal rings have found a way to exploit a loophole in the communication between banks and Apple Pay that you need to know about.
By now you’ve probably heard that Apple came up with this well thought out procedure called Apple Pay. They wanted it to be another payment option that is more secure than a traditional credit card. And people have generally been very happy with Apple Pay.
Unfortunately, criminal rings have found a vulnerability that they’re exploiting to steal big money.
Criminals are exploiting Apple Pay
U.K. newspaper The Guardian says there are serious organized gangs buying iPhones and then marrying them to the credit card or checking accounts of people whose identity they have stolen.
So the criminal rings do the ID theft first, then they contact your bank and impersonate you to tie your checking account or credit card into an iPhone. Once that’s done, they can use Apple Pay to empty your account or post false charges.
The bank thinks you’re the one who did it! This thing is going to be a real mess as it continues playing out. The Guardian says the banks have not used sufficient security to verify the identity of the people contacting them, as they were rushing to try to cooperate with the new Apple Pay initiative.
The crazy thing is you don’t need to be an Apple user to have this happen to you. You could have an Android or just a plain old feature phone and still get hit with this scam!
It’s yet another example of the vulnerability of banks forgetting the “know they customer” rule. Banks used to know who their customers were. Today, however, we deal with 4 behemoths that account for half of all banking in the country… and they have no idea who their customers are.
That’s allowed crooks to exploit the weaknesses in the chain. This time the verification process to tie a phone to your account is the weakness.
So what can you do about it? Go through your statements each month and dispute any weird charges. If you have something tied to your checking account, you’ll know quickly when there’s funny business because you’ll be bouncing checks left and right. However, most people don’t check their credit card statements, so this crime could go unnoticed.
But don’t let it!!! Check those statements today.