Apple Pay is a payment platform only available on Apple devices that already has major adoption compared to other NFC based payment options. Once a card has been added to Apple Pay and verified by an authorized user it is close to impossible for unauthorized use. On the Apple Watch you are required to enter a pass code if the watch is removed from your wrist or your heartbeat stops. On all other Apple Pay devices you are required to use a fingerprint from living tissue with current blood flow. That means if someone cuts your hand or finger off, they can’t use your card. Compare this to a regular plastic card, all debit and credit cards allow swipe and sign. It is up to the merchant and cashier to verify your signature and or Photo ID. On top of that, most times the only way to get a stolen card back is to cancel it and wait for a new one in the mail.
Recently, “industry experts” said that up to 6% of Apple Pay transactions are fraud. Let’s first break down some important facts. Apple has only reported generalized adoption rates, they have not reported the total amount of activations or the types of cards activated. There is also no way for anyone, even the best data sources, to determine accurate numbers for Apple Pay due to the security and encryption procedures. In order to get these types of reports, banks would have to join forces and compare their individual adoption rates. We can’t even get banks to work together on interest rates. Every article and guess about numbers involving Apple Pay transactions, cards, or fraud are completely false unless it comes directly from Apple. Verifiable information and statements can be found on Apple’s Hot News page.
When it comes to these so called “industry experts” and banks pointing fingers, the only one to blame for fraud on any platform including Apple Pay is the bank. Apple allows banks the option to require extended validation when a card is added to Apple Pay. This is required each time a card is added on a per device basis. Some banks like Bank of America have an extended validation that requires a lengthy phone call. If someone can add your card and pass that type of validation, you have more issues then just a stolen card. Many banks do not utilize this extended validation, which allows cards to be more easily activated and used. Most prepaid and gift cards don’t require this validation and these cards can be used by almost anyone anywhere with or without Apple Pay. It is not the responsibility of Apple to force banks to use validation. If your bank doesn’t require this you should ask them why. How does your bank verify you when you call? Does your bank’s automated system give out private information when the number on your account matches your Caller ID? Are you satisfied with the type of validation they require? There are many apps out there that allow anyone from hackers to kids the ability to fake a Caller ID.
The truth is there is no Apple Pay fraud but only the lack of validation from the issuing bank. If your bank negates in even the simplest methods of verification, you should question them or switch to a bank that takes your privacy more seriously. Apple maintains a list of banks that issue Apple Pay cards.