Banks refute 'fraud' allegations linked to Apple Pay

March 23, 2015

Despite ongoing attempts to spread fear, uncertainty, and doubt, banks still bullish on Apple Pay.

A curious cluster of articles appeared in the newspapers over the last two weeks attempting to link Apple Pay to heightened levels of fraud. The sensationalist headlines and narratives never matched the facts, however, and now we know why — the facts didn't support them. . CNNMoney did some actual reporting:

But CNNMoney spoke to the nation's largest banks, an association of community banks and Apple. The takeaway? This high level of fraud isn't really widespread.

Banks also make this point: Banks get stuck with fraud costs. Yet dozens of small banks are in a long line to join Apple Pay by the end of 2015, according to L. Cary Whaley III, a technology policy expert at Independent Community Bankers of America. Why would they want to join if fraud is truly rampant?

Banks have different processes for loading cards into Apple Pay, and it is the responsibility of the banks to make sure that their processes are secure. Some require a phone conversation, while others require a security code sent to your buy email. Several banks also send you alerts when your card is added to Apple Pay.

So, despite repeated trying and failing to link bank fraud to Apple Pay, there's not only nothing to show for it, but now evidence is growing to show it for what it is.

No doubt the truth will eventually come out, and it'll be interesting to see what the actual motivations were here.