A Wall Street Journal article has revealed that around six per cent of Apple Pay transactions are fraudulent, way above normal plastic payments where fraud accounts for just 0.1 per cent of transactions.
Despite a raft of security measures in place, criminals are successfully targeting the Apple Pay system of adding credit cards to a phone. It appears that some banks are asking for the last four digits of a user’s Social Security number as an extra security feature, which is something that can easily be stolen as part of identity fraud. This is enabling criminals to register cards to their own phones, which they can then use to buy items at over 200,000 locations in the USA.
This news has broken just two days after Samsung announced their own Samsung Pay service, expected to launch in the USA and South Korea in the summer. Android users will be hoping that this security lapse will not be a problem in their Samsung S6 and S6 edges as that figure of six per cent is rather alarming.
Security features in Samsung Pay include the encryption of data and the fact that merchants receive a one-time code to authorise a transaction instead of a card number.
Are you worried about the security breach? Let us know in the comments.
Also, you can learn how to protect your phone with our privacy masterclass in issue 48 of Android magazine. Find it in all good retailers and online here.