Multiple Apple Card Fraud Incidents Raise Questions About Security

The Apple Card might not be as safe as it seems. A 9to5Mac reader described suffering from a credit card skimming attack. Later, another suffered from fraudulent Apple Card charges though he'd never physically used his card.

The Apple Card was released earlier this year in August. It was billed as one of the most secure credit card payment systems in the world. Moreover, Apple’s transparent billing and customer-friendly terms made it a great option for iPhone owners looking for a new credit card.

However, it seems that even the Apple Card is susceptible to security issues. A reader at 9to5Mac named David shared an incident where his Apple Card was allegedly skimmed. This happened even though the Apple Card doesn’t have a number on it.

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Multiple Incidents of Apple Card Fraud Have Been Reported

This is what the representative had to say:

“I do not know how this could have happened. It’s very rare for your card to be in two places at one time. Since our physical cards have no number on it, it’s very hard for someone to copy it. After a dispute, we will proceed with an investigation and from there they will try to find out how the charge was made.”

The most likely explanation for what happened to David was that a thief used a card skimmer to clone his Apple Card’s data. Even though the Apple card has no physical number attached, skimming is possible since there’s a magnetic strip present.

Now, another user came forward and mentioned that he was a victim of Apple Card fraud despite never even using his physical card. This user has an Apple Titanium card but has only ever used Apple Pay to facilitate payments. He’s never physically swiped his card. Despite this, he recently saw a fraudulent physical payment take place in Chicago, while he was living on the West Coast. This is bewildering because it points to potentially grave security flaws in the Apple Card system. This is how Apple describes transactions:

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“When you make a purchase, Apple Pay uses a device-specific number and unique transaction code. So your card number is never stored on your device or on Apple servers, and when you pay, your card numbers are never shared by Apple with merchants.”

If a fraudulent payment in a different geography occurs despite these measures, it’s possible that malicious actors are exploiting a vulnerability in the payment. It could also be possible that insiders at either Apple or Goldman Sachs are selling card information to malicious actors. Even Apple seems confused. This is what an Apple Care rep had to say about the situation:

I’m not entirely sure how this happens. My team is in charge of taking care of unrecognized transactions and we can only see where the transaction was made and what card was used, details of that sort.

All credit cards are susceptible to fraud. This is one of the drawbacks of using them for payment. However, the Apple Card was promoted heavily as an especially secure card. One thing is for sure: No payment method is ever 100 percent safe.

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If your Apple Card is lost or stolen, we advise that you take the steps given here.

Nikhil Makwana
Nikhil runs iGB’s official YouTube channel. He is the official lensman of iGB and GB’s small studio is Nikhil’s playground, where he does all wonders with his remarkable signature. When Nikhil is not in his studio, you may spot him in a gourmet restaurant, chomping his way through some delicious food. He is a great traveler, who can go for long drives in search of good food.
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