Apple (NASDAQ:AAPL) Pay is running into problems with fraud and banks are trying to fix the issue.
The issue surrounding the Apple Pay fraud cases doesn’t actually have a lot to do with the mobile payment service. Instead, the blame falls on banks for for failed security. The issue is that some banks don’t include much in the way of authentication when a person signs up to use the payment service, reports The Guardian.
Scammers are using these security flaws to sign stolen credit cards onto their Apple Pay accounts and then use them to buy high-priced items. It’s important to note that these scammers haven’t actually broke through Apple’s security to complete their scams. Banks are trying to increase security to combat the problem, The Guardian notes.
Smartphone owners that are looking for a way to continue to use NFC technology for mobile payments, but don’t want to use Apple Pay, have a couple of options. The first option is Google (NASDAQ:GOOG,NASDAQ:GOOGL) Wallet. The service has been around since 2011, but hasn’t been as successful as Pay. There is also Plastc, an upcoming NFC device that should be released in summer. It costs a little extra, but it can also work with terminals that only use magnetic stripes for payments, reports ABC News.
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