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.”