The Wall Street Journal reports that many banks are becoming more strict on the sign-up process for adding cards to Apple Pay, as many crooks are loading stolen credit cards on the mobile payment system found on the iPhone 6, iPhone 6 Plus, and soon Apple Watch.

While the Apple Pay system isn’t actively creating fraud, criminals who already have stolen credit cards are able to easily load them to the mobile wallet due to lax procedures and are able to use them in-stores, evading authorities.

According to the publication, now banks are making customers jump through more hoops.

Specific banks weren’t named, however, they 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.

The Apple Pay fraud situation was first reported by Drop Labs. “These are organized crime rings that are handing out pre-provisioned devices to mules that are then being used to commit fraud – with much of fraud (for some issuers) – occurring around Miami, FL and Dallas, TX,” the publication said.

“Apple Pay is designed to be extremely secure and protect a user’s personal information,” an Apple spokesperson said. “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.”

Source: Wall Street Journal via DropLabs

  • El Matador

    This was bound to happen. I’m glad the banks are on it and are finding new ways to stay of top of this type of fraud.

  • Linton Findlay

    samsung pay has the right idea and just uses the normal contactless payment method

    • Alberto Espinal

      Omg really dude!

      • Bruh…

      • Alberto Espinal

        Hey what’s up Mr. E, long time no see!

    • Correct me if I’m wrong, but I suspect Samsung Pay uses the same procedure for loading the card. So, the end result would still be the same; criminals evading authority, but using Samsung’s phones this time.

      • Straightshoota

        The major difference being they will be able to use the cards at more locations due to it working like current magnetic strips on credit cards. therefore if used in this way nit won’t use tokens like apple pay and privacy will not be there either. ( so samsung can sell or share your info. and shopping habits for added profits ) However the lack of the token system with samsung would make it much more transparent to track the fraud. (because the credit cards would be charged in the same manner they always have been just with a phone instead.)

      • Maxim∑

        but the amount of locations will be going down overtime while NFC locations go up. Unlike NFC you cant tell when terminal is/isn’t using magnetic stripe. In 2016 companies will be held liable for frauds committed on a POS thats not using chip and pin

      • Whenever that happens in the US, it’ll always be ready like NFC smartphones have been. So, it’ll still remain compatible with majority of POS terminals.

      • No tokenization for the magenetic strip method? They stated on stage that you’re protected in two ways, with your fingerprint and tokenization. Don’t see why it will be restricted to only NFC transactions.

    • Kr00

      Still open to fraud!

    • igorsky

      Samsung Pay (nice name, by the way) uses the magnetic strip method for payment which, aside from being obsolete within the next year or two, is the least secure of all payment methods. So let’s see how well that works out once it’s released.

  • With my cards, I already had to do things like enter codes or call numbers. So it must be smaller banks that are just now doing this.

    • RayRayBeav

      You’re right. I have Wells Fargo, and I had to download the Wells Fargo Verify app, as well as call them in person to initially set up Apple Pay.

  • Straightshoota

    chase has had the 2 step verification system in place since the very begining. guess they were thinking ahead. good for me!

    • RayRayBeav

      Same as Wells Fargo!

  • Franklin Richards

    O good. This just means people of nanny state Britain will have to wait even longer before Apple Pay arrives.

    • Rowan09

      This is not an issue with Apple Pay itself, it’s an issue with how some banks confirmed adding a card to Apple Pay. When I signed up I had to get a code and email from Chase to confirm I was the card owner.

  • Dante Arellano

    My day is
    7 eleven mornin =no apple pay
    Lowes get some material =no apple pay
    Home Depot = no Apple pay
    Louche time hardys migth got fancy burger king =no apple pay
    Get some gas wawa,valero,exxon = no apple pay
    Dinner time Golden Corral or Pizza Hut =no apple pay
    I fogot toile paper go to walgreens the terminal is no upgrade jet or apple pay is no available jet

    But if i only eat starbucks and live in the wonderful world of disney ill be fine thanks apple pay