The effort is an attempt to thwart criminals who have been typing stolen credit-card numbers into Apple Pay and trying to make purchases with their iPhones.
Banks and credit-card companies teamed up with Apple to develop Apple Pay, which uses tokenization products, a system that replaces some account information with a digital ID for online and mobile purchases.
Banks, such as First Tech Federal Credit Union, have seen fraudulent transactions since introducing Apple Pay. Some issuers have found as much as 8% of Apple Pay transactions to be fraudulent, compared with 0.1% on traditional payments cards, according to a consultant from Aite Group.
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