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You have probably seen the commercials for the iPhone’s handy new feature, Apple Pay. The feature, which was launched in October 2014, allows users of the mobile phone to input their banking information and use their phones at the cash register in place of credit and debit cards. While many were thrilled at the prospect of this new convenience, some were concerned with its safety. Those who were hesitant had plenty of reason to be concerned.
Is Apple the ‘unsinkable ship?’
Apple Pay feature allows users of the mobile phone to input their banking information and use their phones at the cash register in place of credit and debit cards. While many were thrilled at the prospect of this new convenience, some were concerned with the safety of it.
Many people choose iOS over other platforms specifically because it has a reputation for being safer and less troublesome. However, in an article entitled “Iphone…Still Safe…For Now,” the National Cybersecurity Institute reported that over 225,000 Apple accounts had been hacked. While this number is far lower than hacks have occurred on Android and Blackberry operating systems, it is still far too high for a company asking you to trust them with your financial information.
“Apple Pay users are 60% more likely to experience banking fraud than users of traditional banking cards.”
Apple Pay vs. traditional banking cards
Bankrate.com reported that credit card theft reached an all-time high in 2008 when about 361 million records were compromised. Since then, credit card fraud has been on the decline as banks find ways to tighten cybersecurity gaps and consumers get smarter about data security. Apple presented its new mobile payment feature as a way to avoid carrying around the banking cards that may be physically stolen. However, a recent report by The Huffington Post stated that users of Apple Pay are 60 times more likely to experience banking fraud than users of traditional banking cards.
Where did Apple go wrong?
Cherian Abraham, a Richmond-based financial consultant, told the source that the mobile payment service had serious cybersecurity flaws. While Apple Pay does not store the phone owner’s actual banking information, it takes the input data and encrypts it into an alternate account. Aside from the encryption, the only real defense is the Apple firewall. Hackers could easily gain access through social engineering or decryption.
Leaders at Apple say the system is safe and secure, but it is clear that Apple Pay could use some help. People are always searching for the next best convenience, so the mobile payment system is an excellent idea. However, Apple will have to work on making it safer for future use. With a degree such as a Bachelor of Science in Cyber Operations you could be on the team that helps Apple develop a safer program. To learn more about this program and many others, visit the National Cybersecurity Institute’s website today.