Rise in Digital Wallet Fraud Exploiting Apple Pay and Google Pay Reported
Fraudsters are increasingly using phishing techniques to steal bank card details and add victims' cards to digital wallets like Apple Pay and Google Pay to make rapid purchases of high-value electronics and designer goods for quick resale, draining the victims' accounts.
The scam begins with phishing attempts, followed by a bank-style call pressuring victims to approve a notification or share a code, which allows scammers to add the card to the digital wallet. The approval notifications often appear legitimate, as they are actual bank alerts related to Apple Pay or Google Pay card additions that criminals exploit.
Once scammers gain access, they quickly conduct purchases at high-value merchants to extract funds before detection.
Santander reported that digital wallet fraud was the second-largest cause of card scam losses last year. HSBC has observed an increase in such fraud over the past 18 months, while UK Finance notes a surge in fraud attempts as security measures prevent scams in other areas.
In response, banks have introduced new security measures. Nationwide warns customers about the misuse of one-time passcodes, and HSBC and UK Finance advise enabling transaction alerts and regularly reviewing transactions. Victims are urged to contact their bank immediately and report fraud to the official channels.
Apple states it is not responsible for approving the addition of cards to digital wallets but provides information to banks to help combat fraud. Google did not respond to requests for comment.
