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iMore: A Closer Look at Apple Pay and Credit Card Fraud

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Credit card fraud is a huge problem in the world that generates billions of dollars of losses each year. It is capable of affecting businesses, banks, and consumers.

Craig Hockenberry from iMore has posted a story that reveals how Apple Pay rescued him from credit card fraud. One day last week, Hockenberry received a phone call saying that one of his credit cards had been used to make a fraudulent transaction.

“I was on my way to the market to buy dinner. My fingers were crossed that the meager amount of cash in my pocket would be able to cover the charges.”

When he went to make the purchase, he decided to see what Apple Pay would do with a credit card that had been cancelled. To his surprise, Apple Pay worked flawlessly.

“I held my phone up to the reader and… it worked flawlessly.”

The next morning, Hockenberry received an automated email from Citicard AAdvantage that explained what happened:


Apple Pay brings huge security benefits to a traditional credit card, and it is very convenient for consumers who have experienced credit card fraud. Normally if you experience credit card fraud, it’s a huge hassle to update all your online and other accounts with the new number.

“When the card number changes, you have to remember all the places you have a card number stored in a website database. Then you have to go to those sites, one by one, and change them all. So you visit the Netflix site, look up a password you use infrequently, and find where to update your payment information. And then do it at Amazon. And then iTunes. And then for your toll road transponder. And then for your pills. And a few more times after that.”

Given the fact that Apple Pay allows you to continue to use your credit card, after your credit card number is changed, is amazing. Even Apple’s Phil Schiller tweeted out the story:

Apple Pay does not send your credit card number to the merchant, however, it creates a one-time transaction number that makes it impossible to reuse, which makes Apple Pay very secure.

Be sure to read Hockenberry’s full story on iMore.

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