Apple (AAPL) new credit card will make fraud more difficult

NASDAQ: AAPL | Apple Inc. News, Ratings, and Charts

AAPL – Apple ’s new credit card has a curious security feature that will make it much more difficult to carry out credit card fraud.

Apple’s  new credit card has a curious security feature that will make it much more difficult to carry out credit card fraud.


The aptly named Apple Card is a new credit card, built into your iPhone Wallet app, which the company says will help customers live a “healthier” financial lifestyle. The card is designed to replace your traditional credit card and give you perks, such as daily cash. Chief among the benefits is a range of security and privacy features, which Apple says — unlike traditional credit card providers — the company doesn’t know where a customer shopped, what they bought or how much they paid.

But its one feature — a one-time unique dynamic security code — will make it nearly impossible for anyone to use the credit card to make fraudulent purchases.

That three-digit card verification value — or a CVV — on the back of your credit card is usually your last line of defense if someone steals your credit card number, such as if your card is cloned or skimmed by a dodgy ATM  or stolen from a website through a phishing attack.

But rotating the security code will increase the difficulty for an attacker to use your card without your permission.

The idea of a dynamic credit card number first came about a few years ago with the Motion Code credit card concept, built by Oberthur Technologies, which included a randomly generating number built into a tiny display on the back of the card. The only downside is if someone steals your physical card.

Since then, other credit card makers — including Mastercard, the issuing payment provider for Apple Card — have worked to integrate biometric solutions instead. By enabling a fingerprint sensor on the card, powered by the card machine it was entered into, it was hoped that fraudulent purchases would be impossible. Other credit cards have worked to roll out biometric-powered credit cards. Again — a big letdown was online fraud, which still accounts for a huge proportion of fraud.

Apple Card seems to meld the two things: a virtual credit card with a rotating security code, protected by a biometric, like Touch ID or Face ID in newer devices. Better yet, the company’s debut physical titanium credit card won’t even have a credit card number.

Now if someone wants to commit fraud, they need to steal your phone and your face or fingerprint.

Like other sensitive data — such as health, financial and biometric data — any banking and credit card data is stored on the device’s security chip, known as the secure enclave.

Apple Card will be available in the U.S. later this summer.

 


Apple Inc. shares were trading at $189.41 per share on Tuesday afternoon, up $0.67 (+0.35%). Year-to-date, AAPL has gained 20.59%, versus a 12.62% rise in the benchmark S&P 500 index during the same period.

AAPL currently has a StockNews.com POWR Rating of B (Buy), and is ranked #6 of 29 stocks in the Technology – Hardware category.


This article is brought to you courtesy of Tech Crunch.

Get Free Updates

Join thousands of investors who get the latest news, insights and top rated picks from StockNews.com!

Top Stories on StockNews.com

NYSE: TRV | The Travelers Companies, Inc. Common Stock News, Ratings, and Charts

Travelers Cos. (TRV) reports earnings, stock rallies

Travelers released quarterly earnings of $2.83 per share, beating the Zacks Consensus Estimate of $2.76 per share.
NASDAQ: INTC | Intel Corporation News, Ratings, and Charts

Why shares of Intel (INTC) might be a Buy

Intel Stock Is Ready to Rally
: gnln | Greenlane Holdings, Inc. - Class A Common Stock News, Ratings, and Charts

Greenlane Holdings (GNLN) just became the best US marijuana IPO on Nasdaq

Pulling off the feat was easier than you might think. Why?
NYSE: COP | ConocoPhillips Common Stock News, Ratings, and Charts

Should ConocoPhillips (COP) be on your list of stocks to buy?

This Oil Stock Gives Investors 1 More Great Reason to Buy.
NASDAQ: NFLX | Netflix, Inc. News, Ratings, and Charts

Should Netflix (NFLX) be on your list of stocks to buy?

Here's what the year 2024 could look like for the video streamer.

Read More Stories


More Apple Inc. (AAPL) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All AAPL News
Page generated in 1.1126 seconds.