Apple’s new mobile-payment system, Apple Pay, has been hit by a wave of fraudulent transactions in the United States, The Wall Street Journal reported, citing unnamed sources.
The fraudsters used credit card data stolen in recent cyberattacks on big retailers, including Home Depot Inc. and Target Corp., the report said.
About 80 percent of the unauthorized purchases have been for high-priced items bought with smartphones at Apple’s own stores.
The Apple Pay system hasn’t been penetrated by hackers. The fraudsters are entering stolen card data into phones, which can then be used to make purchases without a physical card.
The bogus purchases are a setback for Apple’s high-profile foray into electronic payments, the report said.
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