Apple phone launch sees credit card fraud surge, expert blames lack of 3DS
Hong Kong IT expert Fong Po-kiu links a new wave of credit card fraud during Apple's latest foldable phone launch to the company's failure to adopt 3-D Secure verification, which he says would block automated purchases using stolen card details.
Hong Kong has seen a fresh wave of credit card fraud linked to the launch of Apple's latest foldable smartphone, with fraudsters allegedly using stolen card details to place orders on the company's official website. Hong Kong Information Technology商会 honorary president Fong Po-kiu said the problem likely stems from Apple's decision not to implement 3-D Secure (3DS) one-time verification on its online store, in order to maintain a smooth shopping experience.
Under 3DS, online shoppers who enter personal and credit card details are redirected to their card-issuing bank's website or app to enter a verification code or confirm the transaction before the purchase is authorised. Fong said most shopping websites have adopted 3DS after similar fraud incidents, adding that the technology is not complicated to introduce and that in the event of a dispute, liability typically falls on the party that authorised the transaction.
Fong said fraudsters are likely using leaked credit card data to run automated scripts or bots that place orders on the website. He estimated that as long as a small number of cardholders fail to notice the deduction notification in time, the orders can be shipped successfully, allowing the criminals to resell the goods for profit.
He advised the public to enable banks' real-time transaction alerts, and to immediately report any unauthorised deductions to the police and their card-issuing bank.