Banks Tighten Security Protocols After Reports Of Apple Inc. (AAPL) Pay Card Fraud

Banks are at it again in doing what they were supposed to be doing in the first place. The sector spent a lot of time and money on security in the past. Yet, they faced threats from cyber criminals last year. Since Apple Inc. (NASDAQ:AAPL)’s Pay process system was launched in October last year, banks were somewhat clueless in protecting the transactions coming through it.

As the sector started witnessing fraudulent activities with the use of Apple Inc. (NASDAQ:AAPL)’s Pay, using stolen card data, financial institutions have regrouped to address the issue fully. As a result, they have taken stringent measures on authorization policies concerning Apple Pay and tightened security protocols.

Verification Protocols

Instances of stolen credit cards used by fraudsters came to light last week when they purchased big items from Apple Stores, as well as other retailers who were supporting the Apple Pay payment system. The report indicated that cyber criminals have provided fresh accounts with the stolen card data taken from the data breaches of Home Depot Inc (NYSE:HD) and Target Corporation (NYSE:TGT).

As a result, financial institutions were forced to employ different kinds of security protocols to prevent fraudsters from commit more fraud with the stolen cards. For instance, as far as Apple Inc. (NASDAQ:AAPL)’s Pay is concerned, financial institutions could select to adopt the ‘yellow path’ activation way and send one-time codes of authorization either through text or mail with the registered phone number of address.

Other Options

To tighten the security of the purchase, the financial institutions are also said to be considering other options, like challenge queries about the recent purchases, besides a user’s specific details or address, which the user alone would be able to reveal. Some banks might also need new users of Apple Pay to talk to customer service personnel for one-to-one verification.

The report indicated that users having a registered card with iTunes might be able to pass through the process of provisioning. The key factor here was that Apple Inc. (NASDAQ:AAPL)’s Pay process system was not breached at all, which meant that there was no threat to user information.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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