Apple Card will make credit card fraud a lot more difficult

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 Apple.com/newsroom/2019/03/introducing-Apple-card-a-new-kind-of-credit-card-created-by-Apple/">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 Apple-introduces-its-own-credit-card-the-Apple-card/">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 credit-card-may-help-eliminate-fraud/">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 bank 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 credit-card-secured-by-biometrics/">roll out biometric-powered credit cards. Again — a big let down 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 Apple.com/newsroom/2019/03/introducing-Apple-card-a-new-kind-of-credit-card-created-by-Apple/">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-introduces-its-own-credit-card-the-Apple-card/">Apple introduces its own credit card, the Apple card

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