Man Sentenced to 4 Years in Prison for $ 1.5 Million Apple Pay Fraud

O United States Department of Justice announced that it condemned Daniel Butler, a 30-year-old man living in Miami (Florida), the 4 years in prison for defrauding Apple's mobile payment system.

According to court documents, Butler and three others obtained access to at least 477 credit card bills and linked them to Apple pay on your iPhones. So Butler and his cronies were able to buy using such cards. Result: The group earned more than $ 1.5 million worth of fraudulent purchases.

According to the investigations, illicit activities coincided with a series of fraudulent purchases that began to be reported in March 2015, about two months after the beginning of the criminal action; One of Butler's cronies has already been convicted, and two more are due to be indicted by the end of this year.

The details of the criminal action are not yet clear. It is believed that as soon as the fraudsters gained access to the card numbers, they contacted the issuing banks directly and impersonated the account holders to obtain the necessary information and link the cards to Apple Pay.

This, however, does not imply that Apple Pay is insecure: although transactions occur through the iPhone or Apple Watch, the verification process must be done by banks and financial institutions.

In 2015, a security report published by Drop Labs showed that many banks have not implemented the verification steps required to add a card to Apple Pay, which may be a reason for the increase in fraud since then.

via AppleInsider

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