The culprit with Apple Pay and credit cards is, and always was the bank

March 6, 2015 08:20 EST • Alexandre Vallières-Lagacé • 2 minute read

After seeing all these headlines about Apple Pay being hacked, it only reminded me of my own problems when my Visa card was used by a fraudulent clerk from IKEA. It was the only place I used the thing in weeks, and they only had that shlick-shlick carbon thing from last century. I should have stopped right there but I had big furniture that did not fit in my car.

Apple Pay was used by thiefs to make purchases at Apple Stores because 1) they accept Apple Pay and 2) they sell goods that are valuable. The system itself, the fingerprint scanning, none of it was broken or failed. It was the banks fault.

The banks had approved linking stolen credit cards to the thiefs Apple Pay account. In the process the thiefs used old social engineering techniques like providing the stolen card address and phone numbers. Such information cannot be found online or by stealing an invoice statement. Oh no.

This brings me to the root of the issue. Bank security. Banks are notable in asking the very smallest bit of information about you when you called them. Like what’s your mothers maiden name? And what’s your address. Both information can be found on any letter addressed to myself since I have a composed named and my address in on my mail.

No they do not even ask things like birthday or name one recent purchase on your account or a password. Then it’s easy for anybody that has the patience if Googling and stealing mail to build a case of such information.

Stolen cards

Then why were the stolen cards not cancelled you asked? After the Target and Home Depot leaks millions of cards were stolen and not replaced? Well when my card was used to make illicit purchases, the bank did issue me a new one… with the same number! Only the expiration date was changed! I did put in place a password on my account and made sure that if somebody called to change my address they ask tons of informations.

But it could still be used online for fraudulent purposes. If that does not prove there is a massive problem with banks I do not know what will.

Apple Pay is just like accusing the plastic manufacturing company of being responsible for the credit card theft.